Introduction
Hey readers,
If you’re like most student loan borrowers, you’re probably wondering when your payments will resume. After all, the federal student loan payment pause has been in effect for over two years now. So, it’s understandable to be a bit confused about what’s going to happen next.
In this article, we’ll break down everything you need to know about when student loans resume. We’ll cover the latest news, payment deadlines, and what you can do to prepare. So, sit back, relax, and let’s get started.
The Latest News
The Biden administration has announced that the federal student loan payment pause will end on August 31, 2023. This means that borrowers will have to start making payments again on September 1, 2023.
This is the fourth time that the payment pause has been extended. The first extension was announced in March 2020, just as the COVID-19 pandemic was starting to take hold in the United States. The pause has been extended several times since then, most recently in April 2022.
Payment Options
Once the payment pause ends, borrowers will have several different repayment options available to them. These options include:
- Income-driven repayment (IDR) plans: These plans cap your monthly payments at a percentage of your income. This can make them a more affordable option for borrowers who have low incomes.
- Standard repayment plan: This plan requires you to pay your loan off in full over a period of 10 years. This is the most common repayment plan, and it’s the one that most borrowers will be on when the payment pause ends.
- Extended repayment plan: This plan allows you to extend your repayment period to up to 25 years. This can be a good option for borrowers who have high loan balances or who are struggling to make their monthly payments.
What You Can Do to Prepare
If you’re not sure how you’re going to afford your student loan payments when they resume, there are a few things you can do to prepare:
- Contact your loan servicer. Your loan servicer can help you determine which repayment plan is right for you and can even help you set up a payment plan.
- Create a budget. This will help you track your income and expenses so that you can see how much money you have available to put towards your student loans.
- Explore student loan forgiveness options. There are a number of student loan forgiveness programs available, including Public Service Loan Forgiveness and Teacher Loan Forgiveness. If you qualify for one of these programs, you may be able to have your student loans forgiven after a certain number of years of service.
Timeline
Here is a timeline of key dates related to the student loan payment pause:
| Date | Event |
|---|---|
| March 13, 2020 | The CARES Act is signed into law, creating the federal student loan payment pause. |
| September 30, 2020 | The payment pause is extended to January 31, 2021. |
| January 20, 2021 | The payment pause is extended to September 30, 2021. |
| April 6, 2022 | The payment pause is extended to August 31, 2023. |
| August 31, 2023 | The payment pause ends and student loan payments resume on September 1, 2023. |
Conclusion
The student loan payment pause is ending on August 31, 2023. This means that borrowers will have to start making payments again on September 1, 2023. If you’re not sure how you’re going to afford your payments, be sure to contact your loan servicer and explore student loan forgiveness options.
For more information on student loans, be sure to check out our other articles:
FAQ about When Do Student Loans Resume
Question 1: When do student loan payments resume after the pandemic forbearance?
Answer: Student loan payments resumed on January 1, 2023, after being paused since March 2020 due to the COVID-19 pandemic.
Question 2: What is the deadline to sign up for income-driven repayment plans?
Answer: The deadline to sign up for income-driven repayment (IDR) plans is December 31, 2023.
Question 3: Are there any changes to the IDR plans during the repayment pause?
Answer: Yes, there have been some temporary changes to the IDR plans during the repayment pause, such as allowing borrowers to enter the plans without having to recalculate their income.
Question 4: What is the Public Service Loan Forgiveness (PSLF) program?
Answer: PSLF is a federal program that forgives the remaining balance on your student loans after you have made 120 payments while working full-time for a qualifying public service employer.
Question 5: How can I apply for PSLF?
Answer: You can apply for PSLF by submitting a PSLF Form to your loan servicer.
Question 6: What are the requirements for PSLF?
Answer: To qualify for PSLF, you must work full-time for a qualifying public service employer and make 120 qualifying payments on your federal student loans.
Question 7: What if I have already applied for PSLF and haven’t received forgiveness yet?
Answer: Some borrowers have experienced delays in receiving PSLF forgiveness. If you have not yet received forgiveness, you should continue to make payments on your loans and work with your loan servicer to resolve the issue.
Question 8: Can I consolidate my student loans before payments resume?
Answer: Yes, you can consolidate your student loans before payments resume. Consolidation combines multiple federal student loans into a single new loan with a single interest rate, monthly payment, and due date.
Question 9: What should I do if I can’t afford my student loan payments when they resume?
Answer: If you can’t afford your student loan payments when they resume, you should contact your loan servicer immediately to explore your options, such as income-driven repayment plans, deferment, or forbearance.
Question 10: Can I make extra payments on my student loans while the interest rate is zero?
Answer: Yes, you can make extra payments on your student loans while the interest rate is zero. Any extra payments you make will go directly to reducing your loan balance.