The U.S. Department of Education has officially announced that student loan payments will resume in October, ending the three-year-long pause that was implemented due to the pandemic.
Starting September 1, interest will begin accruing on your student loan debt. We understand that this adjustment may have financial implications, considering that around 40 million Americans have educational debt, with the average monthly bill being approximately $350.1
It is important to note that the recent law passed by Congress makes it almost certain payments will resume. Despite ongoing discussions and potential developments, the likelihood of payments being paused again is unlikely.1
Last week, the Supreme Court "...struck down President Biden's student debt relief plan to forgive some or all federal student loan debt for tens of millions of Americans. By a 6-to-3 vote on ideological lines, the high court ruled that federal law does not authorize the Department of Education to cancel such student loan debt...Last August, President Biden told federal student loan borrowers that the U.S. government would cancel up to $20,000 of debt for low-income students who had received a Pell Grant to attend college, and up to $10,000 for the vast majority of remaining borrowers subject to income eligibility."2
We understand that the uncertainty surrounding these matters can be challenging. Rest assured that we are closely monitoring the situation and will provide updates as soon as they become available. In the meantime, please keep an eye on your student loan account details, as exact due dates may vary.
If you have any questions or concerns, please do not hesitate to reach out to us. We are here to support you, and we may be able to provide some guidance through this process.
1. CNBC.com, June 20, 2023. “It’s official: Student loan payments will restart in October, Education Department says.”
2. NPR.org, June 30, 2023. "Supreme Court kills Biden's student debt plan in a setback for millions of borrowers."
Resumption of Student Loan Payments and Interest Accrual
July 05, 2023