The federal student loan payment pause ended in September 2023

The pause on federal student loan payments and interest accrual began in March 2020 under President Trump as a response to the COVID-19 pandemic. Borrowers did not have to make monthly payments, and no interest accumulated on their loans during this time. This pause continued under President Biden and was extended multiple times.

In September 2023, under the Biden administration, the payment pause ended and regular loan payments resumed. This means borrowers who had been in pause status were required to start making monthly payments again. The pause itself was not a Trump policy that was later frozen or reversed — it was a temporary measure that ran its course over three years.

Key Takeaways

  • The payment pause started under Trump in March 2020 and lasted until September 2023, affecting all federal student loan borrowers.
  • During the pause, borrowers made no payments and no interest accrued, regardless of which administration was in office.
  • The pause ended in September 2023, and borrowers returned to regular monthly payment schedules.
  • Loan forgiveness programs announced by the Biden administration were separate from the payment pause and faced legal challenges.

What the payment pause actually covered

The pause applied to all federal student loans held by the Department of Education, including Direct Loans, Federal Family Education Loans (FFEL), and Perkins Loans. Private student loans were not affected by the pause. Borrowers with federal loans did not have to make payments during this period, and the government did not charge interest.

The pause also stopped collection activity on defaulted loans and prevented wage garnishment or Social Security offset during the pause period. This meant that even borrowers who were in default had a break from collection efforts. However, the pause did not forgive any loan balance — it only postponed payments and stopped interest from accumulating.

Why the pause lasted so long

The initial pause was meant to be temporary emergency relief during the early months of the pandemic. However, Congress and successive administrations extended it repeatedly as economic conditions remained uncertain and unemployment stayed elevated. Each extension kept the pause in place for additional months.

The pause became one of the longest-running pandemic relief measures. Borrowers had nearly three and a half years without making payments. This gave many households breathing room during a period of economic disruption, though it also meant that loan balances did not decrease during this time.

What happened when the pause ended

When payments resumed in September 2023, borrowers were required to start making their regular monthly payments again. The Department of Education sent notices to borrowers before the restart date, and servicers began processing payments. Borrowers who did not resume payments risked going into default.

The restart was staggered somewhat — the government allowed a grace period where missed payments would not immediately be reported to credit bureaus. However, after that grace period ended, missed payments could affect credit scores. Borrowers who were struggling to resume payments had options including income-driven repayment plans, which can lower monthly obligations based on income.

Loan forgiveness was separate from the payment pause

The Biden administration announced a loan forgiveness program in August 2022 that would have forgiven up to $20,000 in federal student loans for Pell Grant recipients and up to $10,000 for other borrowers. This was a separate action from the payment pause and was not a Trump policy. The forgiveness program faced legal challenges and did not go into effect as originally announced.

The payment pause and loan forgiveness were two different things. The pause stopped payments temporarily; forgiveness would have reduced or eliminated loan balances permanently. The pause affected all federal borrowers; forgiveness would have applied only to borrowers meeting certain income and other criteria.

What borrowers needed to do after the pause ended

Borrowers who wanted to resume payments on a manageable schedule had several options. Income-driven repayment plans calculate monthly payments based on discretionary income, which can result in payments as low as $0 per month for borrowers with very low income. Borrowers could contact their loan servicer to enroll in one of these plans.

Borrowers who were having trouble affording payments could also ask their servicer about deferment or forbearance, which temporarily pause payments (though interest may accrue). Public Service Loan Forgiveness (PSLF) remained available for borrowers working in government or nonprofit jobs. The key was to contact the servicer before missing a payment, rather than waiting until default occurred.

Frequently Asked Questions

Did Trump freeze student loans permanently?

No. Trump initiated the payment pause in March 2020 as a temporary emergency measure during the pandemic. The pause lasted until September 2023 under subsequent administrations. It was always intended to be temporary, not permanent.

Can I still get my loans paused if I'm struggling?

The automatic pandemic pause ended in September 2023. However, you can request deferment or forbearance from your loan servicer, which temporarily stops or reduces payments. These options have different rules about interest accrual and duration, so ask your servicer which option fits your situation.

What happens if I didn't make payments after September 2023?

Missed payments are reported to credit bureaus and can damage your credit score. After 90 days of missed payments, your loan goes into default, which can trigger wage garnishment or Social Security offset. Contact your servicer immediately if you missed payments to discuss income-driven repayment or other options.

Is there any current loan forgiveness program?

The broad forgiveness program announced in 2022 did not go into effect. However, Public Service Loan Forgiveness remains available for borrowers in government or nonprofit jobs, and income-driven repayment plans can lead to forgiveness after 20 to 25 years of payments. Check with your servicer about programs you may be able to use.