The payment pause ended in October 2023
Federal student loans are no longer on hold. The payment pause that began in March 2020 ended on October 1, 2023, and monthly payments resumed for most borrowers. If you have federal student loans, you are expected to make payments again unless you are in school, in a grace period, or have arranged a deferment or forbearance with your loan servicer.
The pause covered all federal student loans held by the Department of Education. During those three and a half years, no payments were required, interest did not accrue, and collections activity stopped. That period is now over, and the standard repayment rules are back in effect.
Key Takeaways
- Federal student loan payments restarted on October 1, 2023, and borrowers are required to resume making monthly payments.
- Your monthly payment amount depends on which repayment plan you are on, and you can change plans if your current payment is unaffordable.
- If you cannot afford your payment, contact your loan servicer to request income-driven repayment or forbearance before you miss a payment.
- Private student loans were never included in the pause and have required payments throughout.
What your payment obligation looks like now
Your monthly payment is determined by your repayment plan and your loan balance. The standard plan requires you to pay off your loans in 10 years. Income-driven plans calculate your payment based on your discretionary income and family size, which can result in a much lower monthly amount — sometimes as low as $0 if your income is below the poverty line.
You can find your current payment amount and repayment plan by logging into your account at studentaid.gov or contacting your loan servicer directly. Your servicer's name and contact information appear on your loan statements and on the Federal Student Aid website.
If you switched servicers during the pause — which happened to many borrowers when the Department of Education consolidated servicers — your new servicer should have your loan information on file. If you cannot locate your account, call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).
What to do if your payment is too high
You do not have to stay on your current repayment plan. If your payment is unaffordable, you can switch to an income-driven repayment plan, which recalculates your payment based on what you actually earn. 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).
To change plans, contact your loan servicer and request a plan change, or use the Repayment Estimator tool at studentaid.gov to see what your payment would be under each plan. You will need to provide recent income information — usually your most recent tax return or a statement from your employer.
If you need immediate relief while you sort out a new plan, you can request forbearance, which temporarily pauses your payments for up to three years. Forbearance is not ideal because interest continues to accrue, but it prevents missed payments from damaging your credit while you make other arrangements.
How the pause affected your loan balance
During the pause, interest did not accrue on federal student loans. This means your loan balance stayed the same even though no payments were being made. Now that payments have resumed, interest accrues again at your loan's stated interest rate.
If you made voluntary payments during the pause, those payments reduced your principal balance. If you did not make payments, your balance is exactly what it was on March 13, 2020, when the pause began. You can see your current balance and interest rate on your loan servicer's website or on studentaid.gov.
What changed for borrowers with Parent PLUS loans
Parent PLUS loans were included in the payment pause and also resumed in October 2023. Parent PLUS loans do not have income-driven repayment options, so your choices are more limited. You can stay on the standard 10-year plan, switch to a graduated plan, or request forbearance if you cannot afford payments.
If you are struggling with Parent PLUS loan payments, contact your servicer about consolidating them into a Direct Consolidation Loan, which would then make you may be able to access for income-driven repayment plans. Consolidation takes several weeks to process and resets your repayment timeline, so weigh this option carefully.
Private student loans were never paused
If you have private student loans from a bank or other private lender, those loans were never included in the federal pause. You have been required to make payments on private loans throughout the entire period since March 2020. If you fell behind on private loans during the pause, that delinquency is on your credit report.
Private lenders do not offer income-driven repayment plans, but many will work with you on forbearance or loan modification if you contact them. Some private lenders also allow refinancing, which can lower your interest rate if your credit has improved since you took out the loan.
What happens if you miss a payment
If you miss a payment on a federal student loan, your loan becomes delinquent. After 90 days of non-payment, the delinquency is reported to credit bureaus and begins to damage your credit score. After 270 days (about nine months), your loan goes into default, and the government can take action to recover the debt, including wage garnishment and offset of tax refunds.
If you are about to miss a payment, contact your servicer immediately. Explain your situation and ask about forbearance, income-driven repayment, or a temporary payment reduction. These options are much better than allowing your loan to become delinquent.
Frequently Asked Questions
Can I get another payment pause if I cannot afford to pay?
No. The payment pause was a temporary measure that ended in October 2023. However, you can request forbearance from your servicer, which temporarily stops your payments for up to three years. You can also switch to an income-driven repayment plan, which may lower your payment to an amount you can afford.
Do I have to make a payment in October 2023, or do I have a grace period?
Payments were due starting October 1, 2023. There was no additional grace period. If you did not make a payment by the due date on your loan statement, contact your servicer immediately to avoid delinquency.
What if I have federal loans but I'm still in school?
If you are enrolled at least half-time in an may be able to access school, your loans remain in an in-school deferment and no payments are required. Once you graduate or drop below half-time enrollment, you enter a six-month grace period before payments begin. After the grace period ends, you must start making payments.
Will there be loan forgiveness for the pause period?
No automatic forgiveness was granted for the pause period itself. However, the Department of Education has separate loan forgiveness programs, including Public Service Loan Forgiveness (PSLF) for government and nonprofit employees, and income-driven repayment forgiveness after 20 to 25 years of payments. These programs operate independently of the pause.
How do I know which servicer handles my loans now?
Log into studentaid.gov with your FSA ID and check the "My Aid" section, which lists your loans and their servicers. You can also call the Federal Student Aid Information Center at 1-800-433-3243. During the servicer transition, some borrowers' loans moved to new companies, so checking your account is the fastest way to confirm.