Student loans

When do student loan repayments resume?

AFTER more than two years of suspended payments, the suspension of student loan repayments will end on December 31, 2022.

The White House has indicated there will be no more breaks after this year and payments will resume.


The pause on student loans will end on December 31, 2022

Reimbursements are due to resume on January 1, 2023.

The first federal student loan deferral was established by the CARES Act.

The CARES Act was a stimulus bill passed by Congress and signed into law by former President Donald Trump on March 27, 2020, in response to the Covid-19 pandemic.

More recently President Joe Biden extended the break on August 24, this time until December 31.

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The initial freeze was intended to help people hold on to their money during the pandemic, but many borrowers are still struggling financially.

Biden announced the extension at the same time he unveiled his broad student loan relief plan.

President announcement that borrowers earning less than $125,000 a year will receive up to $10,000 in debt forgiveness.

Pell Grant recipients are in line for up to $20,000.

More than 43 million Americans owe a total of $1.7 trillion in student debt, according to the Federal Reserve.

Which loans are eligible for the pause?

The pause on student loan payments and interest covers all student loans held by the federal government, according to the Department of Education.

Eligible student loans include:

  • Direct Federal Student Loans
  • Federal Family Education Loans Program loans held by the Department of Education
  • Federal Perkins loans held by the Department of Education
  • Defaulted FFEL loans not held by National Education
  • Overdue Health Education Assistance Loans

However, not all student loans are eligible.

This includes:

  • Non-defaulted FFEL loans not held by the Ministry of Education
  • Federal Perkins loans not held by the Department of Education
  • Non-Defaulted HEAL Loans
  • Private student loans

To find out if your loan repayments are suspended, it is best to, contact your loan officer.

To find out if your loans are held by the Ministry of Education, follow these steps:

  • Visit your dashboard
  • Find the section “My Loan Officers”
  • If you see a service name that begins with “DEPT OF ED”, the corresponding loan is held by the Department of Education.

History of student loan repayment freezes

Under the CARES Act, student loan repayments were originally scheduled to resume on September 30, 2020.

The Trump administration extended the postponement twice, until January 31, 2021.

Since taking office, President Biden has extended the payment freeze five times.

Hours after becoming president, Biden pushed back the January 31 deadline to September 30, 2021.

In August 2021, the Biden administration announced another loan extension and noted that loans would be suspended until January 31, 2022.

On December 22, 2021, the administration then announced that repayment of student loans would be paused for an additional 90 days – until May 1, 2022.

Less than a month before the May 1 deadline, President Biden pushed back student loan repayments until the end of August.

And in late August, as the deadline loomed once again, Biden pushed back the freeze until the end of the year.

According to the president, this will be the last extension of the reimbursement moratorium.

Borrowers should plan to resume payments in January 2023, the US Department of Education said in a statement.

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