Biden admin will resume interest on federal student loans Sept. 1; monthly payments due in October

From Politico.com  

After more than three years, the federal government’s pandemic-related suspension of student loan payments and interest is officially coming to an end. 

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

— The deal President Joe Biden and House Speaker Kevin McCarthy reached to raise the debt ceiling earlier this month cemented into law the termination of the payment pause that’s been in place since March 2020. 

— But the text of the deal, the Fiscal Responsibility Act, left borrowers with something of a mathematical word problem on the timing: “Sixty days after June 30, 2023,” the law says, the suspension of student loan payments and interest “shall cease to be effective.” 

— That language somewhat mirrors the administration’s previously-announced policy of resuming payments 60 days after either the Supreme Court rules on its sweeping student debt cancellation program or June 30, whichever comes first. 

Read the entire article here.