Preparing for the Resumption of Student Loan Payments: What You Need to Know

After a three-year relief period, Americans with student debt will have to resume loan payments in the fall. The Trump administration initially paused payments in March 2020 as part of pandemic relief measures, but the Biden administration agreed to end the payment pause in a deal with Republicans. The Supreme Court struck down the White House's student debt forgiveness plan, prompting borrowers to face their student debt once again. The Department of Education has announced that payments will restart in October, with interest accruing from September. The White House has introduced "on-ramp" policies to ease the restart, and changes to income-driven repayment plans are expected next year. The majority of the 43 million borrowers with federal loans will be impacted, with one in five borrowers at risk of struggling with payments. Biden is exploring alternative pathways for student loan forgiveness after the court ruling.