Student loan restart: Payments to begin again when federal pause ends in two days

Millions of borrowers will have to resume their monthly payments when the COVID-19-era pause on student loan payments ends in two days.

The amount borrowers owe for the first payment and when it is due will be sent out 21 days before the due date, according to the Department of Education. Payments begin to resume as soon as Oct. 1.

ALL EYES TURN TO GAVIN NEWSOM AS DIANNE FEINSTEIN DEATH CREATES SENATE VACANCY

Borrowers have seen their student loan payments paused since the coronavirus pandemic began in March 2020. The pause has been extended numerous times by the Trump and Biden administrations, but following the pandemic’s end, 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 the pause ends, a “temporary on-ramp” will exist through Sept. 30, 2024. Those in the “on-ramp” program will not be reported as being delinquent on their payments if they are currently unable to pay them until next year.

“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 program.

This temporary 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.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

Despite the looming threat of a government shutdown beginning on Sunday, student loan payments will resume regardless.

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.