Biden’s Education Department is planning for student-loan borrowers to resume payments in October — and companies would begin charging interest a month before

Insider 

Ayelet Sheffey

April 25, 2023

• The Education Department is asking student-loan companies to prepare for loan-payment resumption.

• Documents obtained by Politico indicated companies would start charging interest in September.

• The department is anticipating the first monthly payment for borrowers will be in October.

Plans are underway to transition millions of federal student-loan borrowers back into repayment this year.

Since March 2020, federal student-loan payments have been paused and interest has been waived to give borrowers financial relief during the pandemic. The pause was created under President Donald Trump, and President Joe Biden extended it numerous times — most recently through 60 days after June 30 or 60 days after the Supreme Court issues a final decision on the legality of Biden’s plan to cancel up to $20,000 in student debt for federal borrowers, whichever happens first.

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