Student Loan Payment Pause Ending; Loan Interest to Resume

Updates are being made to this blog regularly as new information becomes available. Please see below. Bolded information was updated on 6/15/2023.

As a result of COVID-19 relief efforts, a pause on federal student loan repayment was put in place on March 13, 2020 and has since been in effect. During this time, federal student loan borrowers have not been required to make payments on qualifying federal student loans, interest rates were set to 0% and collections on defaulted loans were paused.

This historic pause is ending soon and we want to make sure you’re prepared.

Student loan interest will resume starting on Sept. 1, 2023, and payments will be due starting in October. Borrowers will receive their billing statement or other notice from their loan servicer at least 21 days before their payment is due. The pause was extended another time after the Biden Administration’s “Student Loan Debt Relief Plan” was blocked in November 2022. The extension will either last until the U.S. Department of Education is permitted to implement the debt relief program or the litigation is resolved, where payments will restart 60 days later or, if the debt relief program has not been implemented and the litigation has not been resolved by June 30, 2023 — payments will resume 60 days after that. The U.S. Department of Education will notify borrowers before payments restart.

If you are enrolled in school at least half-time (6 credits for undergraduates | 5 credits for graduates), your loan(s) will not enter repayment once the repayment pause ends. Your loan(s) will continue to be deferred until you graduate, stop attending school or drop below half-time enrollment.

Once you either graduate, stop attending school or drop below half-time enrollment, you will complete Exit Counseling. Students are typically given a 6-month grace period before repayment is expected; however, this grace period is one-time, so if you used all or a portion of it, you may be required to begin repayment immediately. Contact your loan servicer* to learn more.

*Although the federal government is your lender for all federal direct loans, they assign a third-party servicer to your loans. This servicer is who you will work with to repay your federal direct loans.

If you borrowed loans from the U.S. Department of Education and have already completed or left school, dropped below half-time enrollment or expect to begin repayment in the near future, here are four steps to make sure you’re prepared for student loan payments to resume:

1. Update your contact information in your profile on your loan servicer’s website and in your profile.

2. Review your auto-debit enrollment or sign up for the first time. To do so, log in to your loan servicer’s website or contact your loan servicer directly.

3. Check out Loan Simulator to find a repayment plan that meets your needs and goals or to decide whether to consolidate.

4. Consider applying for an income-driven repayment (IDR) plan. An IDR plan can make your payments more affordable, depending on your income and family size.

In addition to the payment pause ending, we also want students to be aware that the pause on federal student loan interest, which was set at 0% for many borrowers for over 3 years will now reset. After the payment pause ends, regular interest rates will apply and begin to accrue.

Remember, unsubsidized and PLUS loans accrue interest immediately after disbursement, so any unsubsidized loans you previously borrowed will begin to accrue interest again, even if you’re still in school. Please remember, you are not required to make payments on these loans while you are in school at least half-time. Repayment begins once you graduate, stop attending school or drop below half-time enrollment.

Not sure of your interest rate(s)? Click here to view rates on loans disbursed after July 1, 2006 to present.

Please note: If you consolidated your loans during the 0% interest period, your interest rate may be different than the original rate.

You can also log on to your account at or contact your loan servicer for more information on interest rates and repayment. If you’d like to make payments on your loan or accrued interest while in school, contact your loan servicer to set up payment arrangements.

If you’ve defaulted on federal loans, contact your loan servicer for more information on repayment and the impacts of defaulting.

This blog is for informational purposes only. For more information and updates on the federal student loan COVID-19 relief efforts and the end of the payment pause, please visit or contact your loan servicer.

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