When Do Student Loans Resume? A Comprehensive Guide

When Do Student Loans Resume Icon

When Do Student Loans Resume? The COVID-19 pandemic has brought about unprecedented changes, affecting various aspects of our lives, including student loans. Since March 2020, the U.S. Department of Education (ED) has implemented a moratorium on student loan payments and interest accrual. This relief, extended several times, is set to conclude on August 31, 2023. As this date approaches, it’s crucial for borrowers to be prepared for the resumption of student loan responsibilities.

The Pause and Its Expiry

The moratorium on student loan payments and interest accumulation, introduced in response to the COVID-19 pandemic, has offered temporary relief to countless student borrowers. However, it’s essential to note that this relief will come to an end on August 31, 2023. After this date, interest will once again be applied to federal student loans.

Resumption of Payments

While the interest will restart from August 31, borrowers can take a deep breath, as payments won’t be due until October 2023. Despite this grace period, it’s highly recommended to start preparing well in advance.

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When Do Student Loans Resume?

How to Prepare

To ensure a smooth transition back into student loan repayment, here are some important steps to take:

1. Identify Your Loan Servicer

Each borrower is assigned a specific loan servicer. This information can be found on your student loan account statement. It’s crucial to identify your loan servicer, as they will play a pivotal role in guiding you through the resumption process.

2. Establish Contact

If you have any doubts or queries regarding the resumption of payments, don’t hesitate to get in touch with your loan servicer. They possess the knowledge to address your concerns and help you formulate a viable plan.

3. Opt for Autopay

Setting up autopay is a proactive way to avoid late fees and ensure your payments are consistently on time. Most loan servicers provide an autopay option, and it’s often free to enroll.

4. Explore Repayment Options

Student borrowers have the privilege of selecting from various repayment options. These include standard repayment plans, income-driven repayment plans, and graduated repayment plans. Thoroughly assess these options and choose the one that aligns best with your financial situation.

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When Do Student Loans Resume?

Effective Tips for Managing Payments

When navigating student loan payments, adopting effective strategies can alleviate financial stress:

1. Craft a Budget and Stick to It

Creating a budget empowers you to track your income and expenses accurately. This helps you ensure that you’re allocating sufficient funds for your monthly payments while managing other financial responsibilities.

2. Make Extra Payments

Even a small additional payment can make a substantial difference over time. If your financial circumstances permit, consider making extra payments to expedite your journey towards repayment.

3. Consider Refinancing

If your current interest rate is unfavorable, refinancing can offer substantial savings over the long run. Exploring this option with a lower interest rate can reduce your financial burden significantly.

A Positive Conclusion

Transitioning back into student loan payments can undoubtedly be challenging, but remember that you’re not alone in this journey. A plethora of resources are available to assist you in managing your payments and maintaining financial stability. By taking proactive steps to prepare for the resumption of payments, you can ease the transition and secure your financial future.


  1. Yes, there is a grace period of about one month between the end of the moratorium and the resumption of payments.

  1. If you're experiencing financial challenges, consider reaching out to your loan servicer to explore potential options like income-driven repayment plans.

  1. While payments are not required during the grace period, you're welcome to make payments if you wish to get a head start on reducing your loan balance.

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