Millions of borrowers will have to resume their monthly payments when the COVID-19-era pause on student loan payments ends in one day.
The amount borrowers owe for the first payment and its due date will be sent out 21 days before the deadline, according to the Department of Education. Payments will resume for borrowers as soon as Oct. 1, regardless of if the government shuts down.
GOVERNMENT SHUTDOWN: WHAT WILL BE OPEN AND WHAT WILL BE CLOSED
Student loan payments were paused for borrowers when the coronavirus pandemic hit the United States in full force in March 2020, and since then, the pause has been extended numerous times by the Biden administration. As the pandemic has ended in the U.S., payments are set to resume in October.
Interest on outstanding student loans already resumed on Sept. 1 after it had been paused since March 13, 2020.
While payments do resume next month, if borrowers are unable to begin paying their loans off at that time, a “temporary on-ramp” will exist through Sept. 30, 2024. Borrowers will not be reported …
Student loan restart: Payments to begin again as federal pause ends in one day
Posted in Economy