Student loans: Monthly payments due in October, Department of Education says

WASHINGTON — The Department of Education clarified on Monday that borrowers with federal student loans will be required to make monthly payments beginning in October, according to published reports.

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In a statement to Politico, a department spokesperson said that tens of millions of people with student loan debt will make payments for the first time since March 2020 in October. Interest on loans will resume at the beginning of September, the news outlet reported.

“Student loan interest will resume starting on September 1, 2023, and payments will be due starting in October,” an Education Department spokesperson confirmed to Politico. “We will notify borrowers well before payments restart.”

CNN also reported the statement from the Department of Education.

The restart of payments begins after more than a three-year pause in payments and accrued interest, which was implemented at the beginning of the COVID-19 pandemic.

Federal student loan borrowers can go online to the Federal Student Aid website for updates on resuming payments.

Payments will resume as a result of negotiations over the debt ceiling bill that was negotiated between President Joe Biden and House Speaker Kevin McCarthy.

Previously, the Biden administration had said the payment pause would end either 60 days after the U.S. Supreme Court issues a decision on lawsuits brought against the government over the loan forgiveness plan, or 60 days after June 30, whichever comes first.

Payments are set to restart regardless of how the Supreme Court rules in the lawsuit. That decision is expected later this month or in July.