"Countdown to Student Loan Repayment: Interest Resumes as Payment Pause Nears End"

The three-year pause on federal student loan payments is coming to an end, as interest will start accruing again on September 1. The Biden administration has implemented a yearlong grace period to ease the transition, during which late or missed payments will not be reported to credit agencies. The administration is still pursuing debt cancellation through the Higher Education Act, but it remains uncertain who will qualify and when. Additionally, a new income-driven repayment plan called SAVE has been introduced, which aims to lower monthly payments and shorten the repayment period. The plan also clears interest if borrowers can pay the monthly bill on the principal loan amount.