Federal student loans are not currently paused, and borrowers must resume making payments
The federal student loan payment pause that began in March 2020 ended on September 1, 2023. Borrowers with Direct Loans, Federal Family Education Loans (FFEL), and Perkins Loans are now required to make monthly payments again. If you have federal student loans, your servicer has already sent you notice of the restart date and your new payment amount.
The pause lasted nearly three and a half years and included a 0% interest rate during that time. That period is over. Your loans are accruing interest again at the rate set when you borrowed, and monthly payments are due according to your repayment plan.
If you have not made a payment since the pause began, contact your loan servicer now to understand your current balance, interest accrual, and payment options. Skipping payments after the restart date will damage your credit and may trigger default proceedings.
Key Takeaways
- The federal student loan payment pause ended on September 1, 2023, and borrowers must resume making payments on their federal loans.
- Interest rates returned to their original rates when the pause ended, and interest has been accruing on your balance since that date.
- Your loan servicer sent notice of the restart before September 2023, and you can contact them to confirm your payment amount and due date.
- If you cannot afford your current payment, income-driven repayment plans may lower your monthly obligation based on what you earn.
What happened during the payment pause
From March 2020 through August 2023, federal student loan borrowers did not have to make monthly payments. The Department of Education also set the interest rate to 0% during this period, meaning your loan balance did not grow even though you were not paying.
This pause applied to all federal student loans held by the Department of Education: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. It also covered older FFEL loans and Perkins Loans held by the government. Private student loans were never part of the pause.
Many borrowers used this time to pay down other debts, build emergency savings, or catch up on household expenses. Others made extra payments toward their student loans to reduce the principal balance. If you made payments during the pause, those payments went directly to reducing what you owe.
How to find your loan servicer and current balance
Your loan servicer is the company that collects your monthly payments and manages your account. It is not the lender — it is the company the Department of Education hired to handle the day-to-day work. You can find your servicer and view your loan details by logging into studentaid.gov with your FSA ID (Federal Student Aid ID).
On studentaid.gov, you will see each of your federal loans listed separately, along with the servicer's name and contact information. Your servicer's website is where you log in to make payments, change your repayment plan, or request a deferment or forbearance if you are having trouble paying.
If you have lost track of your loans or do not remember your FSA ID, you can create a new one at studentaid.gov. You will need your Social Security number and a valid email address. Once you log in, you can see your complete loan history and current balance, including how much interest has accrued since September 2023.
Income-driven repayment plans and lower monthly payments
If your monthly payment is more than you can afford, you may be able to lower it by switching to an income-driven repayment plan. These plans calculate your payment based on how much you earn rather than how much you borrowed. Your payment could be as low as $0 per month if your income is below a certain threshold.
There are four income-driven plans: Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR). Each has different rules about how payment is calculated and how long you must repay. PAYE and REPAYE typically result in the lowest payments for most borrowers, but you must meet income and loan-age requirements to use them.
To change your repayment plan, log into your servicer's website or call them directly. You will need to provide recent income information, usually from your most recent tax return or pay stub. The change takes effect within one to two billing cycles. If your income drops or changes, you can request a new calculation at any time.
What happens if you cannot pay right now
If you are not ready to resume payments, you have options that prevent your loan from going into default. Deferment and forbearance are both ways to temporarily stop or reduce your monthly payment obligation.
Deferment is available if you are in school, unemployed, or facing economic hardship. During deferment, you do not have to make payments, and interest does not accrue on subsidized loans (though it does on unsubsidized loans). Forbearance is available if you do not meet deferment requirements but are still having trouble paying. During forbearance, you do not have to pay, but interest accrues on all loan types.
Both deferment and forbearance are temporary — typically lasting six to twelve months. You must request them before you miss a payment, and you must reapply when the period ends. Contact your servicer to discuss which option fits your situation. Deferment is generally preferable because it stops interest from accruing on subsidized loans, but forbearance is easier to obtain if you do not meet deferment criteria.
How missed payments affect your credit and loan status
If you do not make a payment by the due date, your loan enters delinquency. After 90 days of missed payments, the delinquency is reported to credit bureaus and damages your credit score. After 270 days (about nine months) of non-payment, your loan goes into default.
Once a loan is in default, the Department of Education can take action to recover the debt. This includes wage garnishment (taking money directly from your paycheck), tax refund offset (keeping your federal tax refund), and Social Security offset (reducing your Social Security benefits if you are receiving them). Default also makes it nearly impossible to borrow for a car, home, or other major purchase.
If you have missed payments since the pause ended, contact your servicer immediately. If your loan is not yet in default, you may be able to catch up or enter a repayment plan without triggering default proceedings. The longer you wait, the fewer options you have.
Public Service Loan Forgiveness and the payment pause
If you work for a government agency or a nonprofit organization, you may be on track for Public Service Loan Forgiveness (PSLF). This program forgives your remaining federal student loan balance after you make 120 may have access to monthly payments while working in public service.
Payments made during the pause (March 2020 through August 2023) were counted toward the 120-payment requirement, even though you were not required to pay. This means many borrowers moved closer to forgiveness without making a payment. When the pause ended, those months still counted.
If you are pursuing PSLF, continue making payments on time now that the pause has ended. You can check your progress toward forgiveness by logging into your servicer's website or by requesting a PSLF Limited Waiver review if you believe you have already made 120 may have access to payments.
Frequently Asked Questions
Will the federal student loan pause start again?
There is no current plan to pause federal student loan payments again. The pause was a temporary measure during the COVID-19 pandemic. Payments are expected to continue indefinitely unless Congress passes new legislation. Monitor studentaid.gov or your servicer's website for any official announcements from the Department of Education.
Do I have to pay back the interest that accrued during the pause?
No. Interest that accrued during the pause (when the rate was 0%) did not add to your balance. Interest began accruing again on September 1, 2023, at your loan's original interest rate. You only owe interest that accrues going forward, not interest from the pause period.
What if I made extra payments during the pause?
Extra payments you made during the pause reduced your principal balance and lowered the total amount you owe. Those payments were applied to your loan and cannot be refunded. You now owe less than you would have if you had not made those payments.
Can I consolidate my federal loans to get a lower payment?
Yes, you can consolidate federal loans into a Direct Consolidation Loan, which may allow you to extend your repayment term and lower your monthly payment. However, consolidation also means starting over on the 120-payment count for Public Service Loan Forgiveness. Before consolidating, speak with your servicer about whether it makes sense for your situation.
What if my loan servicer changed during the pause?
The Department of Education contracts with multiple servicers, and loans are sometimes transferred between them. If your servicer changed, you should have received notice by mail. Log into studentaid.gov to see your current servicer, or call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243) to confirm.