Payments and interest accrual on government-owned federal student loans have been paused since the start of the COVID-19 pandemic in March 2020. All of this is about to end for both groups of borrowers.

Borrowers in Repayment Prior to March 2020

If you were in repayment on these loans prior to March 2020, then you have noticed two things since that time:

  • Your loan payments were paused and you have not been required to make any payments for more than three years
  • Your loans have not accrued any interest for more than three years

Borrowers Entering Repayment for the First Time On or After March 2020

If you entered the normal repayment period on or after March 2020 (e.g., graduated from college, etc.), then you may have noticed two things:

  • You have never had to make a payment on your federally held student loans
  • No interest has been accruing on these loans during this time

Current Students

If you are a current student, no interest has accrued on any Federal Direct Subsidized, Unsubsidized, Parent PLUS, or Grad PLUS since March 2020

What’s Next

Based on action taken by Congress, this pause will end in September 2023 and repayment will resume in October 2023. For some borrowers, this will be the first time they will be required to make a loan payment. For others, this will reinstate their prior student loan payment obligation.

For students currently enrolled in college on at least a half-time basis pursuing a degree or certificate and not required to make any payments under normal deferment rules, interest will once again begin accruing on any federally owned unsubsidized and PLUS loans.

Tens of millions of borrowers will be entering or re-entering repayment during this time. The information presented in these PowerPoints is designed to help you prepare for this unprecedented event.

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