When does interest resume on student loans?
Interest on federal student loans was paused at the beginning of the COVID-19 pandemic in March 2020.
The Department of Education then announced interest would resume on Sept. 1, 2023.
How does interest accrue on student loans?
In these instances, the Education Department pays the interest.
begins accruing immediately after disbursal.
Future interest is then calculated off that new, higher total.
Borrowers can have both subsidized and unsubsidized student loans, with different borrowing limits and interest rates.
When do I need to start making payments on my student loans again?
Payments will be due in October, according to theEducation Department website.
Exactly when in October depends on which loan servicer is handling your account,CNN reported.
The Education Department said borrowers will be notified about details “well before payments restart.”
Read on:Find Out Who Your Student Loan Servicer Is
Which student loans are paused?
Themoratorium on payments and interestincluded all federally held student loans, regardless of what company is servicing the loan.
Here’s how to prepare for student loan payments to resume.
Contact your student loanservicer.If you moved or changed financial institutions, it’s important to provide current information.
Even if you didn’t, you may need to reestablish automatic payments.
it’s possible for you to locate your loan servicer on the Department of Education’sStudent Aid website.
You might have new expenses, a lower-paying job or any other number of variables.
It will cap monthly payments at 5% of discretionary income, down from 10% under REPAYE.
On July 31, 2023, the Department of Education launched abeta tool for the new SAVE plan.
you’re able to check theStudent Aid websitefor updates on resuming payments.
