The payment pause ended in October 2023
The federal student loan payment pause — which stopped required payments and froze interest on most federal loans — ended on October 1, 2023. Borrowers who had paused payments since March 2020 returned to making regular monthly payments starting that month. If you have federal student loans, your servicer should have sent you notice of the restart date and your new payment amount.
The pause applied only to federal student loans, not private loans. It also did not apply to Parent PLUS loans or loans held by the Department of Defense or Department of Veterans Affairs. If you are unsure which type of loans you have, log into your account at studentaid.gov or contact your loan servicer directly.
Key Takeaways
- The payment pause ended October 1, 2023, and borrowers returned to making regular monthly payments on federal student loans.
- The pause covered only federal loans; private student loans, Parent PLUS loans, and some other federal loan types were not affected.
- Your loan servicer sent notice of the restart and your new payment amount before payments resumed.
- Income-driven repayment plans may lower your monthly payment if the standard amount is too high for your budget.
- If you cannot afford payments, contact your servicer about deferment, forbearance, or switching repayment plans before you miss a payment.
How the pause worked and who it covered
The pause began in March 2020 during the COVID-19 pandemic. During those three and a half years, borrowers with federal student loans did not have to make monthly payments, and interest did not accrue on their loans. This meant the loan balance did not grow even though no payments were being made.
The pause covered Direct Loans, Federal Family Education Loans (FFEL), and Perkins Loans held by the Department of Education. It did not cover Parent PLUS loans, loans held by other agencies, or any private student loans. If you consolidated loans during the pause, the pause continued to apply to the consolidated loan.
The pause also included a waiver of the standard requirement to make a payment before your loan enters repayment. This meant borrowers who had not yet started paying could enter repayment without penalty when the pause ended.
What changed when payments restarted
When the pause ended, your monthly payment obligation returned. Your loan servicer calculated your payment based on your loan balance, interest rate, and repayment plan. The amount you owe each month depends on which repayment plan you are on — the standard 10-year plan, an income-driven plan, or another option.
Interest also resumed accruing on your loans starting October 1, 2023. This means your loan balance will grow each month by the amount of interest charged, unless your payment covers the full interest plus principal. On income-driven plans, your payment may not cover all the interest, which means your balance can grow even while you are making payments.
If you received a Direct Consolidation Loan or Parent PLUS loan after the pause began, those loans were not covered by the pause and payments may have continued throughout. Check your loan documents or servicer account to confirm which loans were paused and which were not.
Income-driven repayment plans and payment amounts
If your standard 10-year payment is more than you can afford, you may be able to switch to an income-driven repayment plan. These plans calculate your payment as a percentage of your discretionary income — the amount left after basic living expenses. Your payment may be as low as $0 per month if your income is below the poverty line.
The four income-driven plans are Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR). Each has different income thresholds, payment percentages, and forgiveness timelines. PAYE and REPAYE generally result in lower payments than IBR or ICR, but the right plan depends on your income, family size, and loan balance.
To switch plans, contact your loan servicer or log into your account at studentaid.gov. You will need to provide recent income information, usually from your tax return or a pay stub. The servicer will recalculate your payment and send you a new payment schedule. Switching plans takes one to two weeks in most cases.
What to do if you cannot afford your payment
If your payment is too high even on an income-driven plan, you have other options before you miss a payment. Contact your loan servicer and explain your situation. Do not wait until you are behind — servicers can help you before that happens.
Deferment allows you to pause payments for up to three years in certain situations: unemployment, economic hardship, enrollment in school, or military service. During deferment on subsidized loans, interest does not accrue. During deferment on unsubsidized loans, interest accrues but you do not have to pay it.
Forbearance also pauses payments, usually for up to 12 months, and can be renewed. Unlike deferment, interest accrues on all loans during forbearance, and you are responsible for paying it. Forbearance is easier to obtain than deferment and does not require you to meet specific criteria, but it costs more in the long run because your balance grows.
Both deferment and forbearance are temporary solutions. When they end, your payment obligation returns. Use this time to improve your income, reduce expenses, or explore a permanent change like switching repayment plans.
Loan forgiveness programs and the pause
During the payment pause, the Department of Education also paused the count of months toward loan forgiveness. This means time spent in the pause did not count toward the 120 payments required for Public Service Loan Forgiveness (PSLF) or the 20 to 25 years required for income-driven plan forgiveness.
When payments restarted in October 2023, the count toward forgiveness also restarted. Each payment you make now counts toward your forgiveness timeline. If you work in public service and are pursuing PSLF, confirm with your employer and servicer that your employment qualifies and that your payments are being counted correctly.
Income-driven plan forgiveness forgives the remaining balance after 20 years (for undergraduate loans) or 25 years (for graduate loans) of payments. The pause did not extend these timelines, so your forgiveness date remains based on when you first entered repayment, not when the pause ended.
Private student loans and the pause
Private student loans were never covered by the federal payment pause. If you have private loans, you continued making payments throughout the pause period. Your lender did not pause interest or payments, and your loan balance continued to grow normally.
Private loans do not have income-driven repayment plans or forgiveness programs. Your options if you cannot afford payments are limited to contacting your lender directly to discuss hardship programs, deferment, or forbearance. These are offered at the lender's discretion and terms vary widely.
If you have both federal and private loans, prioritize federal loans first because they have more protections and options. Once you have a sustainable payment plan for federal loans, work with your private lender on a separate arrangement.
Frequently Asked Questions
Do I have to make a payment in October 2023?
Payments restarted on October 1, 2023. Your first payment after the pause was due in November 2023. If you missed that payment, contact your servicer immediately to discuss catching up or setting up a payment plan. Missing payments damages your credit and can lead to default.
Can I go back on the payment pause?
No. The pause ended permanently on October 1, 2023, and there is no mechanism to restart it. Your only options now are to make payments, switch repayment plans, or use deferment or forbearance if you may have access to. Contact your servicer to discuss which option fits your situation.
What happens if I default on my federal student loans?
Default occurs after 270 days (about nine months) without payment. Once in default, your entire loan balance becomes due immediately, your credit score drops significantly, and the government can garnish your wages or tax refunds. Contact your servicer before you reach 90 days late to explore deferment, forbearance, or income-driven plans.
Does switching to an income-driven plan affect my credit?
Switching repayment plans does not affect your credit. It is a change to your loan terms, not a new application. Your servicer handles it as an account update. However, if you have missed payments before switching, those late payments remain on your credit report.
Can I make extra payments to pay off my loan faster?
Yes. Federal student loans allow you to make extra payments without penalty. Any amount over your required monthly payment goes directly to principal and reduces your balance faster. This also reduces the total interest you pay over the life of the loan. Contact your servicer to confirm they are applying extra payments to principal, not future months.