The U.S. Department of Education has officially announced that student loan payments will resume in October, ending the three-year-long pause that was implemented due to the pandemic.
Starting September 1, interest will begin accruing on your student loan debt. We understand that this adjustment may have financial implications, considering that around 40 million Americans have educational debt, with the average monthly bill being approximately $350.1
It is important to note that the recent law passed by Congress makes it almost certain payments will resume. Despite ongoing discussions and potential developments, the likelihood of payments being paused again is unlikely.1
The verdict is still pending from the Supreme Court regarding President Biden's plan to cancel up to $20,000 in student debt for borrowers, which complicates matters. A decision is expected this month. Should loan forgiveness be approved, the Education Department plans to re-amortize your lower debt amount to recalibrate your monthly payment accordingly.1
We understand that the uncertainty surrounding these matters can be challenging. Rest assured that we are closely monitoring the situation and will provide updates as soon as they become available. In the meantime, please keep an eye on your student loan account details, as exact due dates may vary.
If you have any questions or concerns, please do not hesitate to reach out to us. We are here to support you, and we may be able to provide some guidance through this process. If you're a college student in the Grand Rapids, MI area seeking financial advice, we encourage a face to face meeting. If you happen to be from out of state, we may be very able to work with you remotely. In many ways, decisions in the years spent acquiring student loans and paying them off may impact your ability to pursue your financial goals in the future.
We know many of our readers may not have student loans, if you know anyone who would benefit from this information or more, we suggest sharing our blog as an informational resource.
Remember all our posts are designed to inform, not to provide advice or steps of action. Always speak with a financial professional before acting.
1. CNBC.com, June 20, 2023. “It’s official: Student loan payments will restart in October, Education Department says.”
Resumption of Student Loan Payments and Interest Accrual
June 23, 2023