Student loan restart: Payments to begin again in four days as federal pause ends

Borrowers will have to resume their student loan payments within the coming weeks, as the COVID-19-era pause ends in four days.

Student loan payments will begin to resume for millions of borrowers starting on Oct. 1, with the amount borrowers owe and the due date for the payment will be sent out 21 days before the first payment is due, per the Department of Education.

CORY BOOKER CALLS ON NEW JERSEY COLLEAGUE MENENDEZ TO RESIGN AMID INDICTMENT UPROAR

The federal government paused student loan payments when the coronavirus pandemic hit the United States in full force in March 2020, and the pause has been extended numerous times by the Biden administration. Following the pandemic’s end 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.

If borrowers are unable to begin paying their loans off when payments resume in October, a “temporary on-ramp” will exist through Sept. 30, 2024. Borrowers will not be reported as being delinquent on their payments if they are currently unable to pay them until then.

“Payments are still due, and interest will continue to accrue (add up). We will not report you as delinquent during the on-ramp, but we do not control how credit scoring companies factor in missed or delayed payments,” the Department of Education said on its website about the “on-ramp” period.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

This “temporary on-ramp” solution is available for those with direct loans, Federal Family Education Loan Program loans held by the Education Department, Federal Perkins Loans held by the Education Department, defaulted Federal Family Education Loan Program loans not held by the Education Department, and defaulted Health Education Assistance Loan Program loans.

While the “on-ramp” exists to help borrowers who must resume payments, not all borrowers will resume payments in October. Those who graduated this spring will not have to begin making payments until their grace period ends, which is usually six to nine months after graduating from college.