After being on hold since the beginning of the coronavirus pandemic, people with outstanding student loans will soon have to start paying on them again.
August 29 is the current restart payment date for student loans impacting 43 million people. At that time, the loans will start to accrue interest, which was also on hold.
Student loan payments restarting was a provision in the deal that raised the debt ceiling. Congress would have to approve a future pause on student loan payments.
President Joe Biden’s student loan forgiveness plan is currently before the Supreme Court. The plan could see up to $10K in federal student loans forgiven and up to $20K for those with Pell Grants. A decision is expected to be announced in June or July.