Student loan payments will restart for millions of borrowers after the COVID-19-era pause ends on October 1, 2023.
Borrowers will receive the first payment amount and due date notifications 21 days before the resumption date.
Regardless of government funding status, student loan payments will resume on October 1.
Interest on outstanding student loans resumed on September 1, 2023, after being paused since March 2020.
A "temporary on-ramp" option will be available for borrowers who can't start payments immediately, lasting until September 30, 2024.
While not reported as delinquent during the on-ramp, credit scoring companies may consider missed or delayed payments differently.
The on-ramp solution is available for various loan types, including direct loans, Federal Family Education Loan Program loans, and defaulted loans.
Recent graduates won't start payments until their grace period ends, typically six to nine months post-graduation.
The Biden administration had extended the payment pause multiple times during the pandemic.
Borrowers should prepare for the impending resumption of payments and assess their financial options accordingly.