Federal student loan interest to resume in September, payments in October
Federal student loan payments and interest accumulation was first instated by the Trump administration and repeatedly extended under President Biden
Federal student loan interest is set to resume in September, with payment suspensions set to expire not long afterward.
President Biden's Department of Education told FOX Business that pandemic-related suspensions on federal student loans are now set to expire after months of speculation.
"Student loan interest will resume starting on September 1, 2023, and payments will be due starting in October," the Department of Education told multiple outlets this week. "We will notify borrowers well before payments restart."
FEDERAL STUDENT LOANS PAYMENTS TO RESTART, EDUCATION SECRETARY CONFIRMS
The U.S. Department of Education building is shown in Washington, D.C., July 21, 2007. (SAUL LOEB/AFP via Getty Images / Getty Images)
Fox News Digital reached out to the Department of Education for comment.
Federal student loan payments were paused, and interest rates reduced to 0% in March 2020, when President Donald Trump signed the CARES Act in response to the COVID-19 pandemic.
The student loan pause has since been extended multiple times by the Biden administration.
BIDEN ASKS STUDENT LOAN COMPANIES TO PREPARE FOR END TO PAYMENT PAUSE
President Biden arrives at the White House in Washington, D.C. (Kevin Dietsch/Getty Images / Getty Images)
Biden, who is running for re-election, has proposed forgiving up to $10,000 in federal student loan debt and up to $20,000 for those who received Pell Grants — a plan that is currently being challenged in court.
If Biden were permitted to carry out his plan, he could eliminate a total of $441 billion in student debt from more than 40 million borrowers, according to the Federal Reserve Bank of New York.
STUDENT LOAN REFINANCE INTEREST RATES EDGE DOWN FOR 5-YEAR LOANS ONLY
Secretary of Education Miguel Cardona speaks during a visit with first lady Jill Biden to Bergen Community College in Paramus, New Jersey. (AP Photo/Seth Wenig, File / AP Newsroom)
Education Secretary Miguel Cardona previously stated that the administration intended to resume normal debt repayment expectations approximately 60 days after the Supreme Court made a ruling.
If the court does not publish a ruling promptly, the administration is prepared to resume payments 60 days after June 30.