The Biden administration clarified Monday the time period when student loan payments are set to resume after more than three years on hold.
An Education Department spokesperson told Politico that student loan payments will resume in October and interest will begin accruing in September. “Student loan interest will resume starting on September 1, 2023, and payments will be due starting in October,” the spokesperson said. “We will notify borrowers well before payments restart.” (RELATED: The House Just Passed The Fiscal Responsibility Act. Here’s What’s In It)
Sent out to Republicans on McCarthy-Biden deal: pic.twitter.com/d2dmTcYEvW
— Michael Ginsberg (@mikeginsberg98) May 28, 2023
House Republicans and the Biden administration agreed to resume student loan payments as part of the debt ceiling deal negotiated in late May. The legislative text of the Fiscal Responsibility Act states that 60 days after June 30, 2023, the suspension of student loan payments will cease. It also prevents the Secretary of Education from further extending the student loan pause unilaterally.
The Supreme Court has yet to decide on whether the Biden administration will be able to move forward with its plan to cancel $10,000 in student debt per borrower and $20,000 for Pell Grant recipients. On Feb. 28, SCOTUS heard oral arguments for Biden v. Nebraska and Department of Education v. Brown, two cases that will decide the future of Biden’s plan. The Education Department used a section of the 2003 HEROES Act to carry out the forgiveness plan without Congress getting involved.