Debt ceiling deal would require Biden to resume collecting student loans, charging interest

to raise the nation’s debt limit would force the administration to resume collecting federal student loan payments and interest for millions of Americans at the end of the summer.of which was unveiled Sunday evening after weeks of negotiations between the White House and GOP leaders, would terminate the ongoing pause on monthly payments and interest after Aug. 30.

Progressives and student debt activists have said that payments should remain paused at least until the Biden administration is able to deliver on the debt cancellation it promised last year. It does not specify how or when precisely the Education Department must resume collecting payments, shielding the administration’s plans to offer borrowers some type of grace period or extra flexibility with payments as it restarts repayment.White House officials see the deal as codifying into law what the administration had already been planning to do, which was resume collecting payments in September.

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