Student loan payments are not paused right now, but the pause that ran from 2020 to 2023 shaped how many borrowers think about their loans

The federal student loan payment pause ended on September 1, 2023. Borrowers who had federal loans stopped making payments during the COVID-19 pandemic — first under the CARES Act in March 2020, then extended several times. That pause is over. If you have federal student loans, you are expected to resume payments now, unless you are in a deferment, forbearance, or income-driven repayment plan that temporarily stops your payments for other reasons.

The pause affected Direct Loans, Federal Family Education Loans (FFEL), and Perkins Loans held by the Department of Education. Private student loans were never paused. If you are unsure whether your loans are federal or private, log into your account at studentaid.gov or contact your loan servicer.

Key Takeaways

  • The federal student loan payment pause ended September 1, 2023, and borrowers must resume payments unless they are in a deferment or forbearance plan.
  • Interest did not accrue during the pause, and payments made during that time went toward principal, which reduced what many borrowers owed.
  • Private student loans were never paused and continued to require payments throughout the pandemic.
  • If you cannot afford your monthly payment, you can request income-driven repayment, which bases your payment on what you earn rather than what you owe.

What happened to your loans during the pause

While payments were paused, interest stopped accruing on federal loans. This meant that if you made a payment during the pause, the entire amount went toward reducing your principal balance instead of paying interest first. Borrowers who made payments during those three years reduced their loan balance faster than they would have under normal circumstances.

Borrowers who did not make payments during the pause saw their loan balance stay the same — the amount owed did not grow because interest was not being charged. This was different from a typical forbearance, where interest continues to accrue even though you are not making payments.

How to restart payments if you stopped

Contact your loan servicer directly. You can find your servicer's name and phone number by logging into studentaid.gov. Your servicer will tell you your current balance, your monthly payment amount under your current repayment plan, and your due date for the first payment after the pause ended.

If you did not receive a bill or notice from your servicer, call them anyway. Servicer contact information and payment portals are available through studentaid.gov. Do not wait for a bill to arrive — the pause ended in September 2023, and payments are due now.

What to do if you cannot afford your payment

Request an income-driven repayment plan before you miss a payment. These plans calculate your monthly payment based on your income and family size rather than on your loan balance. Under income-driven repayment, your payment could be $0 per month if your income is low enough, and you will not be in default as long as you are enrolled in the plan.

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 rules about how much you pay and how long you pay. You can request a plan change through your servicer's website or by calling them. The change usually takes effect within one to two billing cycles.

If you are in hardship and need immediate relief, you can also request forbearance or deferment, which temporarily stops your payments. Forbearance allows you to pause payments for up to three years at a time, though interest continues to accrue. Deferment also pauses payments, and interest does not accrue if you are in school or meet other deferment conditions. Both are temporary solutions — your payments will resume when the forbearance or deferment ends.

The difference between the pause and other payment relief

The pause was unique because it was automatic and applied to all federal borrowers. Interest did not accrue, and you could choose whether to make payments. Forbearance and deferment are different: you must request them, they are temporary, and interest usually accrues during forbearance (though not during most types of deferment).

Income-driven repayment is permanent until you change plans or pay off your loan. It is not a pause — you still make monthly payments, but the amount is based on your income. If your income drops, your payment can drop too. If your income rises, your payment rises. This is the most common long-term solution for borrowers who cannot afford their standard payment.

What happens if you miss a payment

Missing a payment puts your loan into delinquency. After 90 days of missed payments, the loan goes into default. Default damages your credit score and can lead to wage garnishment, tax refund offset, and loss of may be able to access for future federal student aid.

If you miss a payment, contact your servicer immediately. Explain your situation and ask about income-driven repayment, forbearance, or deferment. Many servicers will work with you to get back on track before your loan goes into default. The longer you wait, the harder it becomes to recover.

Frequently Asked Questions

Do I have to make payments right now?

Yes, unless you are in deferment, forbearance, or an income-driven repayment plan that temporarily stops your payments. The pause ended September 1, 2023. If you have not made a payment since then and your loan is not in one of these plans, you are behind.

Will my interest rate change now that the pause is over?

No. Your interest rate is set when you take out the loan and does not change based on the pause ending. Interest will accrue on your balance going forward at the same rate it did before the pause.

Can I get the pause extended?

The pause has ended and is not being extended. Your options now are to resume payments, switch to income-driven repayment, or request forbearance or deferment if you are in hardship.

What if I paid extra during the pause — do I get that money back?

No. Extra payments you made during the pause reduced your principal balance, which is permanent. You cannot reverse those payments or get a refund.

Are private student loans paused?

Private student loans were never paused. If you have private loans, you have been making payments all along. Contact your private lender directly if you need to discuss payment options.