"Preparing for the End of the Student Loan Pause: Updates and Debt Relief Plans"
Millions of education loan borrowers will have to resume monthly payments starting October 1, 2021, as the pandemic-related pause on federal loans ends. Borrowers are advised to practice making payments now and contact their loan servicer to confirm their monthly payment. Those who need to go the deferment or forbearance route should determine if they can afford to pay the interest that is due. Borrowers are also warned not to ignore interest capitalization, which occurs when monthly loan payments don't cover the interest, resulting in loans growing over time. Finally, borrowers are urged not to ignore their responsibility and to investigate the various repayment plans offered by the Education Department.