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Student Loan Payments Resume – Biden Administration Advises Borrowers to Make Payments During Grace Period

Following the Supreme Court's rejection of the Biden administration's plan to cancel student loan debt, President Biden said that the Department of Education would be offering debtors an "on-ramp" as they get ready to resume loan payments following the suspension that began in 2020. (Photo: OLIVIER DOULIERY/AGENCE FRANCE-PRESSE/GETTY IMAGES)

Undersecretary of Dep. of Education James Kvaal on Student Loan Payment Resumes (Photo:


Borrowers will be temporarily shielded from some of the toughest repercussions of failing to pay student loan bills when the freeze on federal student loan payments, interest, and collections expires this fall.

However, debtors ought to make their payments if they can.

That was one of the messages delivered by James Kvaal, the assistant secretary for education, during his remarks on student loan payments resume to a virtual conference of financial aid officers on Tuesday.

When student loan payments resume this autumn after a more than three-year hiatus, the Department will give borrowers an “on-ramp,” which Kvaal described as “not a pause.”

Kvaal made his remarks on student loan payments resume, a little over a week after the U.S. The Biden administration’s offer to forgive up to $20,000 in student debt for a large segment of debtors was rejected by the Supreme Court.

Officials from the Biden administration had argued in court and elsewhere that, in the absence of widespread debt forgiveness, the start of repayment following the COVID-era payment freeze would cause a wave of delinquency and default.

Borrowers will now resume paying their debts without the benefit of debt relief. In the legislation Congress passed earlier this year to increase the country’s debt ceiling, borrowers were mandated to start making student loan payments again this fall.

The on-ramp is intended to lessen some of the difficulties that debtors may encounter upon resuming repayment, according to President Joe Biden, who made the announcement last month.

In accordance with the program, borrowers won’t be reported to credit reporting agencies or debt collectors if they don’t make their student loan payments for the first 12 months after the student loan freeze expires.

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But Kvaal listed a few distinctions between this grace period and the student loan pause from the COVID era during his remarks. For starters, student loan payments resume interest in September; during the COVID suspension, this did not happen.

When Will Student Loan Payments Start Again And What Should Borrowers Do (Photo: FORBES)

Due to the COVID moratorium, borrowers will also begin receiving student loan invoices this fall, contrary to expectations.

The grace period is a component of the Biden administration’s broader response to the court’s ruling, which Biden made public hours after the court issued its verdict.

With a new legal foundation than the one the court rejected, the administration is attempting to cancel all student debt in large amounts once more.

The Department of Education, on student loan payments resume, will convene interested parties for this second attempt to work out the specific rule it would employ for the debt forgiveness plan.

A regulation procedure often lasts a year or longer, but I can assure you that in this case, we’ll make every effort to move as swiftly as possible to push student loan payments resume, said Kvaal.

Kvaal also praised a new strategy that the President presented in the wake of the Supreme Court’s ruling and that aims to make student loan payments more reasonable and cheap during his speech to the financial aid officers.

When the payment halt is lifted this fall, some of its functions will become operational.

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