Understanding Student Loan Interest and Repayment: Updates and Implications

More than 40 million Americans will have to start repaying federal student loans in October after a Supreme Court ruling struck down President Biden's student loan forgiveness plan. Interest on student loans will begin accruing on September 1, and the first payment will be due in October. The Biden administration has implemented a temporary 12-month "on-ramp" period from October 1, 2021, to September 30, 2024, to help borrowers who are not ready to start making payments. However, missed payments during this period will still accrue interest and will not count towards loan forgiveness. The administration remains committed to its student debt forgiveness plan and is initiating a rulemaking process to explore options for loan relief.