The student loan payment pause that started under Trump continued under Biden, then ended in October 2023
In March 2020, the Trump administration paused federal student loan payments and set the interest rate to zero as part of the pandemic response. This pause was not unique to Trump — it was a temporary measure that Congress and the executive branch extended multiple times over the next three years. The pause remained in effect when Trump left office in January 2021, continued through the Biden administration, and finally ended on October 1, 2023, when payments and interest resumed.
If you had federal student loans during this period, your payments were suspended and no interest accrued, regardless of which administration was in office. This affected Direct Loans, Federal Family Education Loans (FFEL), and Perkins Loans held by the Department of Education. Private student loans were never included in the pause.
Key Takeaways
- The payment pause began in March 2020 under Trump and lasted until October 1, 2023, spanning parts of two administrations.
- During the pause, no monthly payments were required on federal student loans and interest did not accrue, even if you were in default.
- The pause ended in October 2023, and borrowers had to resume making payments or enter a repayment plan to avoid default.
- Private student loans were never included in the pause and continued to require payments throughout this period.
- If you fell behind on payments after the pause ended, you may have options to catch up or adjust your repayment plan.
What the pause actually covered
The pause stopped the requirement to make monthly payments on federal student loans held by the Department of Education. It also set the interest rate to zero, meaning no new interest was added to your balance even if you did not pay. This applied to Direct Loans (the most common type), FFEL loans, and Perkins Loans.
The pause did not forgive any debt — your loan balance remained the same. It simply gave borrowers a break from making payments while the economy was disrupted by the pandemic. Borrowers who wanted to continue paying could still do so, and any payments made went directly toward the principal balance since no interest was accruing.
Private student loans, Parent PLUS loans from private lenders, and loans from state agencies were not covered. If you had any of those, you were required to keep making payments throughout the pause period.
When the pause ended and what changed
The pause ended on October 1, 2023. On that date, monthly payments became due again, and interest began accruing on federal student loans. Borrowers who had not made a payment since March 2020 suddenly had a payment obligation again, and missing that payment could result in default status.
The Department of Education provided a grace period of sorts: if you missed your first payment after the pause ended, you were not immediately reported to credit bureaus as delinquent. However, this grace period was limited, and after a certain number of missed payments, default status would be reported and could damage your credit score.
Borrowers who could not afford to resume payments had options. You could contact your loan servicer to discuss income-driven repayment plans, which calculate your payment based on your current income and family size. You could also request a deferment or forbearance, though interest would accrue during forbearance on most loan types.
What happened to loan forgiveness during this period
Separate from the payment pause, the Biden administration announced a student loan forgiveness program in August 2022 that would have forgiven up to $20,000 in debt for Pell Grant recipients and up to $10,000 for other borrowers. This program was blocked by the courts before it took effect and never became law.
The pause itself did not forgive any loans. It only stopped the requirement to pay and prevented interest from accruing. When the pause ended, borrowers still owed the full original balance plus any interest that had accrued before March 2020.
If you missed payments after the pause ended
If you did not resume payments after October 1, 2023, your loan entered delinquency status. After 90 days of missed payments, your loan servicer reported the delinquency to credit bureaus, which damaged your credit score. After 270 days (about nine months) of missed payments, your loan went into default.
Default has serious consequences: the entire remaining balance becomes due immediately, your wages can be garnished, your tax refunds can be seized, and you lose access to income-driven repayment plans. However, if you are in default, you can still rehabilitate your loan by making nine on-time payments within ten months, which removes the default status from your credit report.
If you fell behind after the pause ended, contact your loan servicer as soon as possible. Explain your situation and ask about income-driven repayment plans, deferment, or forbearance. These options can prevent default and give you time to get back on track.
How the pause affected your loan balance
Because interest did not accrue during the pause, your loan balance did not grow even if you made no payments. This was different from normal circumstances, where unpaid interest gets added to your balance each month.
If you made voluntary payments during the pause, those payments went entirely toward reducing your principal balance. This meant that if you paid $500 per month during the pause, all $500 reduced what you owed — none of it went to interest.
After the pause ended and payments resumed, interest began accruing again. Your monthly payment now includes both principal and interest, so a smaller portion of each payment goes toward reducing your balance compared to what happened during the pause.
Private loans and other debt not covered
If you had private student loans, Parent PLUS loans from a private lender, or loans from a state agency, the pause did not apply to you. These loans continued to require monthly payments throughout the pause period, and interest continued to accrue normally.
Private lenders did not have to follow the federal pause. Some private lenders offered their own payment relief programs during the pandemic, but this was voluntary and varied by lender. If you had private loans, you would need to contact your lender directly to find out what options were available to you.
Frequently Asked Questions
Did Trump create the student loan pause?
Trump's administration initiated the pause in March 2020 as a pandemic response, but it was not a Trump-only policy. Congress and both administrations extended it multiple times, and it lasted until October 2023 under Biden. The pause was a temporary measure supported across both parties during the economic disruption.
Will the pause happen again?
There is no current pause on federal student loan payments. Payments and interest are required as of October 2023. Future pauses would require action by Congress or the executive branch in response to a specific crisis, similar to what happened in 2020.
Can I get my payments back if I paid during the pause?
The Department of Education did not refund payments made during the pause. If you made voluntary payments while the pause was in effect, those payments reduced your balance but were not returned to you. You can contact your loan servicer to confirm the payments were applied correctly.
What if I could not afford to pay after the pause ended?
Contact your loan servicer immediately and ask about income-driven repayment plans, which base your payment on your current income. You can also request deferment or forbearance, though interest accrues during forbearance. Acting quickly prevents default and protects your credit score.
Do I still owe the same amount I owed before the pause?
Yes. The pause stopped payments and interest from accruing, but it did not reduce your balance. You owe the same principal amount you owed in March 2020, plus any interest that accrued before the pause began. Interest has been accruing again since October 2023.