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When Are Student Loans Due Again?
Updated On September 5, 2023
Editorial Note: This content is based solely on the author's opinions and is not provided, approved, endorsed or reviewed by any financial institution or partner.
If you’re like most student loan borrowers, then you may be asking, “When are student loans due again?” Student loan payments restart soon, so now is the time to prepare for next steps.
In this guide, we will discuss:
- The student loan pause
- When student loans are due
- What to know when student loan payments restart
- How to apply for student loan refinancing
- How to get student loan forgiveness
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The student loan pause
The student loan payment pause has been ongoing for more than two years. In March 2020, Congress passed the Cares Act, a $2 trillion stimulus package, in response to the Covid-19 pandemic. The Cares Act contained historic student loan relief, including:
- No mandatory federal student loan payments;
- 0% interest rates on federal student loans; and
- No collection of student loans in default.
President Donald Trump extended this student loan relief twice. President Joe Biden extended the student loan moratorium five times through December 31, 2022. In total, federal student loan borrowers saved more than $5 billion each month of the student loan pause. Since Biden became president in January 2021, student loan borrowers haven’t been required to pay a single dollar of federal student loans.
When student loans are due
After seven extensions of the student loan pause, it’s important to know when student loans are due. According to the Biden administration, student loans are due starting January 1, 2023. Therefore, the student loan pause will expire on December 31, 2022.
What to know when student loan payments restart
Student loan borrowers should know several things when student loan payments restart on January 1, 2023. For example:
- Student loan payments: Federal student loan payments will resume, and borrowers should pay student loans each month.
- Student loan interest rate: Student loans will no longer have a 0% interest rate. Borrowers with federal student loans will have the same fixed interest rate from before the Covid-19 pandemic.
- Student loan default: Borrowers in student loan default could be subject to collection of student loan debt.
- Student loan servicer: During the Covid-19 pandemic, your student loan servicer may have changed. Your studentloan servicer is the company that manages your student loans. For example, your student loan servicer could be MOHELA, Aidvantage, Navient, Edfinancial, Nelnet or another student loan servicer. Login to Federal Student Aid (FSA) to confirm your student loan servicer.
- Contact Information: Make sure to update your contact information and autopay information before student loans are due again. If you moved or change banks, now is a good time to ensure that your student loan servicer has the latest details. This will help you avoid late fees when student loans resume.
- Student loan repayment: When student loans are due again, it’s time to revisit your strategy for student loan repayment. Consider all your options to pay off student loans faster. For example, student loan refinancing, income-driven repayment plans and student loan forgiveness are smart options to evaluate.
How to apply for student loan refinancing
Student loan refinancing is one option to consider when student loans are due again. Student loan refinancing helps you get a lower interest rate, lower student loan payment, or both. When you refinance student loans, you can choose a repayment term from 5 to 20 years and can refinance both federal and private student loans.
If you want to know how to apply for student loan refinancing, the process is easy.
- Compare the latest rates on Mentor.
- Compare student loan terms on Mentor.
- Use a student loan refinancing calculator.
- Apply online with multiple lenders.
- Determine whether you need a cosigner.
- Get approved.
With most student loan refinancing lenders, you can also check your new interest rate online for free with no impact to your credit score in about two minutes. To complete each application to refinance student loans, you should budget about 10-15 minutes.
How to get student loan forgiveness
When student loans are due again, you can explore several options for student loan forgiveness. Your student loan servicer can help you learn about several programs for student loan forgiveness that are available for federal student loans. Generally, student loan forgiveness isn’t available for private student loans.
Here are some popular programs to get student loan forgiveness:
- Income-driven repayment plans
- Public Service Loan Forgiveness
- Borrower defense to repayment
- Teacher Loan Forgiveness
- Total and permanent disability
In addition, Biden announced wide-scale student loan forgiveness of $10,000 for most federal student loan borrowers. Student loan borrowers who used a Pell Grant for college can receive up to $20,000 of student loan forgiveness.
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