{"id":2013333,"date":"2023-08-27T04:09:02","date_gmt":"2023-08-27T08:09:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/student-loans-what-to-know-about-sept-1-end-of-federal-debt-payment-pause\/"},"modified":"2023-08-27T04:11:03","modified_gmt":"2023-08-27T08:11:03","slug":"student-loans-what-to-know-about-sept-1-end-of-federal-debt-payment-pause","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/student-loans-what-to-know-about-sept-1-end-of-federal-debt-payment-pause\/","title":{"rendered":"Sept. 1 marks the end of federal debt payment pause for student loans. Here&#8217;s what you need to know."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">38<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fstudent-loans-what-to-know-about-sept-1-end-of-federal-debt-payment-pause%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2013333&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Student Loan Payments and Interest\u200d Accumulation to Resume\u200d Next Month<\/h2>\n<p>Exciting news for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fmr-white-house-economic-adviser-kudlow-slams-sen-warrens-wealth-tax\/\" title=\"Fmr. White House economic adviser Kudlow slams Sen. Warren\u2019s wealth tax\">federal student loan borrowers<\/a>! After a three and a half year pause, student loan accounts held by the federal government\u2064 will begin\u2063 collecting payments and accumulating interest once again\u200b starting next month.<\/p>\n<p>In\u200b March 2020, due to the impact of the \u2064COVID-19 pandemic, the federal\u2063 government announced a pause on \u2063student loan payments and interest accumulation.\u2063 This pause has been extended multiple times, effectively freezing outstanding balances for federal student\u200c loans for \u2063the past three years.<\/p>\n<p>But now, the wait\u200d is\u200d finally over. On September 1, the pause will come to an end, and interest on federal student loans will start accumulating. Borrowers will need to\u2064 resume their monthly payments in October.<\/p>\n<p>Wondering what you need to do? Here&#8217;s everything you need to\u2063 know:<\/p>\n<h3>When does the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-releases-list-of-president-trumps-accomplishments-and-it-is-historic\/\" title=\"White House Releases List of President Trump\u2019s Accomplishments \u2013  And It Is Historic!\">student loan payment<\/a> \u2064pause \u2063end?<\/h3>\n<p>The pause on\u2064 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/student-loans-what-to-know-about-sept-1-end-of-federal-debt-payment-pause\/\" title=\"Sept. 1 marks the end of federal debt payment pause for student loans. Here's what you need to know.\">federal student loan payments officially ends<\/a> on September \u20631, according to the\u200b U.S. Department of Education&#8217;s Office of Federal Student Aid. Starting from this date, interest will begin to accumulate on your federal\u200b student \u200dloan balances.<\/p>\n<p>However, \u200ddon&#8217;t worry about making payments right\u2064 away. Monthly payments on student loans will not begin until October. This gives you some time to prepare and make necessary arrangements based\u2063 on your repayment plans.<\/p>\n<h3>What information is\u2063 available for\u2064 borrowers?<\/h3>\n<p>The Department of\u2064 Education \u2064has set up\u2063 two dedicated websites to assist borrowers\u200b in getting ready for\u2064 the resumption of payments. One website is for borrowers who\u200d haven&#8217;t made payments yet, \u2064while the other is for \u200dthose who\u200b have previously made payments. \u2062Additionally,\u2062 there is a separate website for borrowers who\u2063 have defaulted on their loans.<\/p>\n<p>It is highly\u2064 recommended that\u2063 you visit\u2063 your loan service \u2063provider&#8217;s website for more\u200c information and to make plans for\u2064 resuming \u2064payments before the October due date.<\/p>\n<h3>What else should I know about my payments resuming?<\/h3>\n<p>The Department of Education wants to ensure that borrowers are well-informed. They will provide a\u200d 21-day notice\u200b of the due date for your first student loan payment. If you enroll in auto-pay, you can enjoy a\u2064 0.25% reduction in your interest rate.<\/p>\n<p>If you were previously enrolled in auto-pay before the\u200b pause, it is likely that you will need to re-enroll\u2063 to continue receiving the benefits.<\/p>\n<h3>What if I can&#8217;t make payments?<\/h3>\n<p>Under the Biden administration, the Department of Education has\u200d made significant changes to \u200cthe Income \u2063Driven Repayment program. This program allows borrowers to make payments\u2062 based on their discretionary income, which is defined as income above the poverty line.<\/p>\n<p>According to the new rules, borrowers will now be required to pay up to 5% of their\u2064 discretionary income per month, instead of the previous \u200c10%. Additionally, borrowers may \u2063qualify for \u200cloan forgiveness after making payments for\u200d at\u200c least 10 years, depending on the loan size.<\/p>\n<p>If you would like to apply for \u2064the Income Driven Repayment program, visit the \u2062department&#8217;s SAVE \u200cplan website at \u200d <a href=\"https:\/\/studentaid.gov\/announcements-events\/save-plan\">https:\/\/studentaid.gov\/announcements-events\/save-plan<\/a>.<\/p>\n<p>Lastly,\u200c it&#8217;s\u2063 important to note that missing payments will not result in loan default during \u2064a\u200b one-year on-ramp\u2062 period that expires in\u200d September 2024. Your missed payments will not negatively impact your credit rating \u2063or be referred for collection.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Starting next month, federal student loan accounts will resume collecting payments and accruing interest after a three and a half year hiatus. This pause was initially implemented in March 2020 by the federal government in response to the impact of the COVID-19 pandemic.<\/p>\n","protected":false},"author":1,"featured_media":2013334,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2013333","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2013333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2013333"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2013333\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2013334"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2013333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2013333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2013333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}