With the recent Supreme Court decision blocking the Biden-Harris Administration’s student debt cancellation plan and the end to the COVID-19 relief for student loans, interest accrual and payments will be resuming for Federal Direct Subsidized and Unsubsidized Loans. Interest accrual is expected to begin on September 1, 2023 and payments on loans will resume in October 2023. Below you will find more detailed information regarding the upcoming changes to federal student loans.
For federal student loan borrowers who are still enrolled in college:
- If you have borrowed a Federal Direct Unsubsidized Loan, interest on the loan will begin accruing again beginning September 1, 2023. Payment is not required on the interest or principle while you are enrolled. However, if you are interested in making payments, please reach out to your federal student loan servicer. Servicer information can be found by logging into your account on the Federal Student Aid website.
For federal student loan borrowers who have graduated or withdrawn from college:
- Borrowers of a Federal Direct Subsidized or Unsubsidized Loan have a six-month grace period between when they leave college and when payment is required on loans:
- If it has been less than six months since you left college, payment on loans will not be required until after the six-month grace period. You will be contacted by your loan servicer with information on when and how to begin making payments. Servicer information can be found by logging into your account on the Federal Student Aid website.
- If it has been more than six months since you left college, you will be expected to begin making payments as soon as the payment pause ends. Payments on loans will be due starting October 2023. You can explore different payment plan options with your loan servicer or on the Federal Student Aid website. Watch out for communications from your loan servicer regarding your payments.
- Interest on all Federal Direct Subsidized or Unsubsidized Loans will begin accruing again beginning September 1, 2023.
For all borrowers, you should take the following steps to make sure you receive up to date information on your loans:
- Make sure you know who your loan servicer is and contact them with any questions. Servicer information can be found by logging into your account on the Federal Student Aid website.
- Update your contact information with your loan servicer to ensure that you receive important communications.
- Ensure that you read all communications from your servicer as they could include important information about your loans.