After a three-year hiatus, repayments on federal student loans begin again this October. If you already have a student loan that’s previously been suspended because of the Covid-19 pandemic, you will be required to resume paying both the principal and interest due.
Thanks to the CARES Act, federal student loans were paused in March 2020 with interest at 0%, and it’s stayed that way since. President Joe Biden tried to initiate a plan to forgive $430 billion of student loan debt, but the Supreme Court blocked that plan in June when it ruled the program an unlawful overreach of executive power in a 6-to-3 decision. After this long hiatus, borrowers will have to once again start paying down their loans plus interest.
