Debt ceiling deal would push student loan borrowers into repayment by fall

Deal ends the payment pause, likely for good

The pause on federal student loan payments is one of the few remaining Covid-related relief measures still in effect. It was first announced by then president Donald Trump in March 2020, and has since been extended eight times. The policy has suspended the accrual of interest on federal student debt and allowed borrowers to forgo making their payments without facing any penalties. Tens of millions of Americans are taking advantage of it. Since the start of the public health crisis, those who have benefited from the pause have saved around $5,000 in interest on average, according to calculations by higher education expert Mark Kantrowitz.

In the current version of the debt ceiling agreement, the pause would be terminated 60 days after the end of June. The U.S. Department of Education would also be restricted in its ability to extend this particular relief again, with another prolongment likely only possible from Congress.

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