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When Do Student Loan Payments Resume in 2023?

when do student loan payments resume

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If you borrowed federal student loans for college, you’ve gotten a break from paying them since March of 2020. The government paused payments and interest on student loans in response to the Covid-19 pandemic.

This emergency student loan forbearance has been extended nine times, but it’s probably coming to an end soon. In fact, you may have to start paying your loans back this summer, with the exact date depending on the Supreme Court’s ruling on loan forgiveness.

If you’re wondering,”When do student loan payments resume?” read on for a closer look at what the Education Department has said so far.

When do student loan payments resume?

Student loan payments will resume 60 days after June 30, 2023, or 60 days after the Supreme Court rules on student loan forgiveness — whichever comes first.

Here’s what the Department of Education (ED) says:

The student loan payment pause is extended until the U.S. Department of Education is permitted to implement the debt relief program or the litigation is resolved. Payments will restart 60 days later. 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. We will notify borrowers before payments restart.

On Feb. 28, the Supreme Court heard arguments over President Joe Biden’s student loan forgiveness plan, which proposed to forgive up to $20,000 per borrower.

Although the arguments only lasted a day, the Supreme Court could takes weeks or even months to reach its verdict. In fact, many experts expect the court to issue its decision close to when its session closes in late June or early July.

The latest you can expect student loan payments to resume is late August of this year (2023). If the Court surprises us by moving quickly, your payments will restart even sooner.

How will you find out when your student loan payments are due?

You won’t be kept in the dark about when student loan payments are due. The Education Department will notify borrowers 60 days before payments are due, and your loan servicer should reach out, too.

Make sure your loan servicer has your most up-to-date contact information so you don’t miss this important announcement. When you sign into your account, review your email, phone number, and home address.

Keep an eye to see if your loan servicer has changed in the past few years, too.

What happens for borrowers who were enrolled in autopay?

If you were making automatic payments on your student loans before the pandemic, you might have to opt into autopay again.

According to the Education Department, your loan servicer will reach out and ask if you want to stay on autopay.

If you respond yes, your servicer will re-enroll you. If you don’t answer, your autopay won’t be switched on, and you’ll have to make payments manually.

There are two exceptions:

  • Perkins loans borrowers will have their autopay turned off. You’ll have to re-enroll if you want your Perkins loan payments auto-debited from your bank account.
  • Borrowers who set up autopay after March 13, 2020 will remain enrolled. You can expect your payments to be automatically debited, but it’s still worth checking in to make sure you don’t miss your payment due date.

What about student loans in default?

If your student loans are in default, you might have the chance to get them back into good standing. The Education Department is offering a Fresh Start program that would let you rehabilitate your defaulted loans.

Normally, you can only use rehabilitation once. With this Fresh Start program, loan rehabilitation becomes available again, even if you’ve already used it in the past.

What’s more, you won’t have to worry about collections calls or garnishment of your wages, tax refunds, or Social Security benefits. You’ll also regain access to financial aid, which could be helpful if you want to go back to school.

Your loan servicer should reach out to you in the coming months about this program if it applies to you. You can also learn more on ED’s website or contact Default Resolution Group to find out who your servicer is.

How to prepare for your student loan payments to resume

It might be daunting to have to pay student loans again, especially if your budget is already stretched thin. Here are some tips for how to prepare:

  • Sign into your accounts and review your loans. Start by checking in with your loans and reviewing your balances, interest rates, and monthly payment amounts so you know exactly what to expect. Find out if your loan servicer has changed — if it has, you might have to set up an account with your new servicer.
  • Review your monthly income and expenses. Create a budget so you can figure out how to afford your student loan payment. There might be areas where you need to cut back so you can afford your payments again. This step will also help you determine whether you need to adjust your monthly bill with a different repayment plan.
  • Explore different repayment plans. The government offers various plans for federal loans, including income-driven repayment. If your bills are burdensome, an income-driven plan could make them more manageable.
  • Look into student loan forgiveness programs. Although we don’t know what’s going to happen with Biden’s forgiveness plan, there are other options out there. Explore federal programs like Public Service Loan Forgiveness and Teacher Loan Forgiveness to see if you qualify. Most states also offer student loan repayment assistance programs for borrowers in certain professions. Plus, an increasing number of employers are offering student loan assistance benefits to their employees.

No one’s excited about having to pay student loans again, but taking these steps to prepare will make the transition easier. Being proactive now will help you manage your bills when student loan payments resume later this year.


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