When Do Student Loan Payments Resume for 2025?

by Alex Hillsberg , MA

Student Finance & Loan Expert

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The sudden pause in student loan payments has given borrowers temporary relief. However, the uncertainty of when payments will resume leaves many worried about their financial future.

Talking with loan experts and using credible sources, we outline the timeline for when student loan payments resume and provide actionable steps to help you in your financial plans.

Key Things You Should Know About When Student Loan Payments Resume for 2025

• Student loan payments resumed on October 1, 2023, ending a prolonged pause that began during the COVID-19 pandemic.
• For a Bachelor’s degree, the average debt is $29,400. 
• 65% of borrowers making student loan payments pay up to $299 a month. 
• Undergraduate loans for the 2024-2025 school year have a rate of 6.53%, up from 5.50% last year.
• 56% of student loan borrowers were unable to pay their student loan debts due to unaffordability.
• 18.4% of eligible student borrowers have applied for loan forgiveness.

When Do Student Loan Payments Resume for 2025 Table of Contents

1. When do student loan payments resume for 2025?
2. Are there any interest rate changes for federal student loans for 2025?
3. What steps can I take to prepare for the resumption of payments?
4. How can I set up automatic payments for student loans restarting for 2025?
5. What documents do I need to review before student loan payments resume for 2025?
6. What are the available student loan repayment plans for 2025?
7. What is the new Income-Based Repayment (IBR) plan starting in July 2025?
8. How do I choose the best repayment plan for student loans restarting for 2025?
9. How will resuming student loan payments for 2025 affect my credit score?
10. Can I refinance or consolidate my student loans?
11. Should I Prioritize Early Repayment or Invest Surplus Funds?
12. What career options can support sustainable student loan repayment?
13. Can I leverage tax deductions and advanced education opportunities to ease my loan burden?
14. Is affordable online education a viable option for working adults managing student loan debt?
15. Is fixed or variable interest rate better for my student loans?
16. Are there any loan forgiveness or loan relief programs available?
17. What rights do I have as a student loan borrower?
18. Can additional certifications boost my career prospects to ease student loan burdens?
19. What should I do if I can't afford my student loan payments for 2025?
20. How can part-time students finance their education for 2025?
21. What are my options if my credit score is low?
22. What should I do if my loan servicer remains unresponsive?

When do student loan payments resume for 2025?

Student loan payments resumed on October 1, 2023, marking the end of a prolonged pause that began during the COVID-19 pandemic. This pause, implemented to provide relief to borrowers facing economic hardship, included a suspension of payments and a temporary halt on interest accrual. 

Interest on federal student loans started accruing again on September 1, 2023, a month before the payments officially restarted. This transition period provides borrowers with a brief window to adjust their finances and plan accordingly. Borrowers should also be aware of any changes or updates in their loan terms or repayment options when student loan payments resume and seek assistance from their loan servicers if they have questions or need support. 

By proactively managing their loans, borrowers can minimize financial stress and ensure they remain on track with their repayment goals when student loan payments resume. Here’s an overview of the average student loan debt by type: 

What steps can I take to prepare for the resumption of payments?

The resumption of student loan payments is a significant financial milestone that requires careful planning and preparation. It's crucial to re-evaluate your financial situation when student loan payments resume and develop a strategy to manage your student loans effectively. Here are the essential steps you can take to ensure you are ready for the resumption of payments.

Review Your Loans

The first step in preparing for the resumption of student loan payments is to thoroughly review your loans. This involves logging into your loan servicer’s website to check your current loan balance, interest rates, and payment due dates. It is also essential to verify that your contact information is up to date with your loan servicer. Accurate information ensures you receive all correspondence regarding your loans, including payment reminders and any updates about your loan terms.

Understand Your Repayment Plan

Next, review your repayment plan when student loan payments resume to determine if it still aligns with your financial situation. Federal student loans offer various repayment plans, including standard, graduated, and income-driven plans. If your current plan does not fit your financial circumstances, consider switching to a more suitable one. Income-driven repayment plans, for instance, can lower your monthly payments based on your income and family size, providing a more manageable payment structure.

Budget for Payments

Creating or updating your budget is critical in preparing for when student loan payments resume. Factor in your student loan payments and adjust your expenses accordingly. This might involve cutting unnecessary expenses or finding additional sources of income. A well-balanced budget ensures you can meet your loan obligations without compromising your other financial goals and needs.

Build an Emergency Fund

Having an emergency fund is vital for financial stability. Aim to save at least three to six months of living expenses in an emergency fund. This fund acts as a safety net, helping you manage unexpected expenses without jeopardizing your ability to make student loan payments. Consistently setting aside money for this fund can provide peace of mind and financial security.

Set Up Auto-Payments

Enrolling in automatic payments can simplify the repayment process and ensure you never miss a payment. Many loan servicers offer a small interest rate reduction for borrowers who set up auto-debit. Ensure your bank account has sufficient funds to cover these automatic payments to avoid overdraft fees and other penalties.

Explore Loan Forgiveness Options

Investigate potential loan forgiveness programs for which you might be eligible. Programs like Public Service Loan Forgiveness (PSLF) offer forgiveness after a certain number of qualifying payments while working in public service jobs. Similarly, Teacher Loan Forgiveness is available to teachers meeting specific criteria. Understanding these programs can help you plan your career and repayment strategy when student loan payments resume.

How can I set up automatic payments for student loans restarting for 2025?

Setting up automatic payments for your student loans can help ensure you never miss a payment when they resume for  2025. Here’s how you can set it up:

1. Log In to Your Loan Servicer's Website. Visit the website of the servicer managing your federal student loans. If you’re unsure who your servicer is, you can find this information by logging into the Federal Student Aid website.
2. Access Payment Options. Once logged in, navigate to the section related to payment options or auto-debit. This is often found under account settings or billing.
3. Enroll in Auto-Debit. Follow the prompts to enroll in automatic payments. You will need to provide your bank account information, including your bank’s routing number and your account number.
4. Confirm and Submit. Review the terms and conditions for automatic payments. Confirm that all the information provided is correct, then submit your enrollment.
5. Check for Discounts. Many loan servicers offer a small interest rate reduction (usually 0.25%) for enrolling in auto-debit, so be sure to check if you’re eligible for this benefit.
6. Monitor Your Account. Ensure that your automatic payments are being processed correctly once they start. It’s also a good idea to keep your account information up-to-date in case of any changes.

What documents do I need to review before student loan payments resume for 2025?

Before student loan payments resume for 2025, it’s crucial to review several key documents to ensure you are well-prepared and understand your obligations. Here are the documents you should review:

1. Loan Statements. These provide a detailed breakdown of your loan balances, interest rates, and payment history. Reviewing these will help you understand the total amount owed and the interest accrued during the payment pause.
2. Repayment Plan Details. Check the specifics of your current repayment plan, including the monthly payment amount and the repayment term. If your financial situation has changed, consider whether you need to switch to a different plan, such as an income-driven repayment plan.
3. Loan Servicer Correspondence. Any recent communications from your loan servicer will contain important updates and reminders about the resumption of payments. These communications may also include information on any changes to your account or servicer policies.
4. Income Documentation. If you plan to apply for or renew an income-driven repayment plan, you’ll need to provide proof of income. This could include recent tax returns, pay stubs, or other documentation of your earnings.
5. Budget and Financial Records. Review your budget and financial records to ensure you can accommodate the upcoming payments. This will help you plan your finances accordingly and make any necessary adjustments.
6. Auto-Debit Enrollment Confirmation. If you plan to set up automatic payments, confirm your enrollment and review the details to ensure the correct account will be debited.

What are the available student loan repayment plans for 2025?

For 2025, several student loan repayment plans are available to accommodate different financial situations. Here are the primary options for federal student loans:

• Standard Repayment Plan. This plan has fixed monthly payments over a 10-year period. It is the default plan for borrowers but can result in higher monthly payments than other plans.
• Graduated Repayment Plan. Payments start low and increase every two years. This plan also spans 10 years but can benefit borrowers who expect their income to rise over time.
• Extended Repayment Plan. Available to borrowers with more than $30,000 in Direct Loans. This plan allows for fixed or graduated payments over a period of up to 25 years, reducing monthly payment amounts.
• Income-Sensitive Repayment Plan. For Federal Family Education Loan (FFEL) Program loans, payments are based on annual income and are made for up to 10 years.

• Revised Pay As You Earn Repayment Plan (REPAYE). Payments are 10% of discretionary income and are recalculated annually based on income and family size. Any remaining balance is forgiven after 20 years for undergraduate loans or 25 years for graduate loans.
• Pay As You Earn Repayment Plan (PAYE). Similar to REPAYE, but payments are capped at 10% of discretionary income, and forgiveness occurs after 20 years. Borrowers must demonstrate financial hardship to qualify.
• Income-Based Repayment Plan (IBR). Payments are 10% or 15% of discretionary income, depending on when the loans were disbursed. Forgiveness occurs after 20 or 25 years.
• Income-Contingent Repayment Plan (ICR). Payments are less than 20% of discretionary income or what you would pay on a fixed repayment plan over 12 years, adjusted for income. Forgiveness occurs after 25 years.

These plans offer flexibility to help borrowers manage their monthly payments based on their financial situation, potentially lowering payments and extending the repayment period. Recent student loan debt statistics indicate that 65% of student loan borrowers pay up to $299 per month.

Here's an overview of the average monthly student loan payment made by borrowers:

What is the new Income-Based Repayment (IBR) plan starting in July 2025?

Starting in July 2025, a new Income-Based Repayment (IBR) plan will be available to federal student loan borrowers. Here are the key features of the new IBR plan:

1. Payment Calculation. Payments will be capped at 10% of the borrower's discretionary income, calculated as the difference between their adjusted gross income and 150% of the federal poverty guideline for their family size and state of residence.
2. Eligibility. This new IBR plan is available to all borrowers with federal student loans, regardless of when the loans were disbursed. Unlike previous plans, there is no requirement to demonstrate partial financial hardship to qualify.
3. Forgiveness. Any remaining loan balance will be forgiven after 20 years of qualifying payments for borrowers with only undergraduate loans. For borrowers with graduate loans, the remaining balance will be forgiven after 25 years of qualifying payments.
4. Interest Subsidy. To help prevent balances from growing, the new IBR plan includes an interest subsidy. For subsidized loans, if the monthly payment does not cover the interest that accrues, the government will pay the remaining interest for up to three years. For unsubsidized loans, half of the unpaid interest will be covered by the government.
5. Recalculation of Payments. Borrowers must update their income and family size information annually, which will be used to recalculate their monthly payments. This ensures that payments remain affordable as the borrower’s financial situation changes.

This new IBR plan is designed to provide greater financial relief and flexibility for borrowers, helping them manage their student loan payments more effectively while working towards eventual forgiveness.

How do I choose the best repayment plan for student loans restarting for 2025?

Choosing the best repayment plan for your student loans as they restart for 2025 involves several steps to ensure the plan fits your financial situation and long-term goals. Here’s how to approach this decision:

Assess Your Financial Situation

• Income. Consider your current and projected income. If your income is stable or expected to increase, a standard or graduated repayment plan might work well. If your income is low or variable, an income-driven repayment (IDR) plan may be more suitable.
• Expenses. Evaluate your monthly expenses and see how much you can afford to pay towards your student loans each month without compromising your essential needs.

Understand Your Loan Details

• Loan Balance and Interest Rates. Higher loan balances and interest rates might make extended or IDR plans more attractive due to lower monthly payments and potential for forgiveness.
• Loan Types. Ensure you know whether your loans are subsidized or unsubsidized, federal or private, as this impacts eligibility for certain plans.

Explore Repayment Plan Options

• Standard Repayment Plan. Fixed monthly payments over 10 years. Good if you can handle higher payments and want to pay off your loan quickly.
• Graduated Repayment Plan. Lower initial payments that increase every two years over a 10-year term. Suitable if you expect your income to rise.
• Extended Repayment Plan. Fixed or graduated payments over 25 years. Ideal for larger loan balances needing lower monthly payments.
• Income-Driven Repayment Plans. Payments are based on your income and family size, with potential for loan forgiveness after 20-25 years. Best for those with lower or variable incomes.

Use Loan Repayment Calculators

Utilize online calculators provided by the Federal Student Aid website or your loan servicer’s site to estimate monthly payments under different plans. This can help visualize the impact on your budget and total repayment amount.

Consider Long-Term Implications

• Total Interest Paid. Longer repayment terms can mean paying more interest over time. Consider how this impacts your overall financial goals.
• Loan Forgiveness. If you’re eligible for Public Service Loan Forgiveness (PSLF) or plan to benefit from IDR forgiveness, factor this into your decision.

Seek Professional Advice

If you’re uncertain, consider consulting a financial advisor or a student loan counselor. They can provide personalized guidance based on your financial situation and goals.

Review and Adjust Annually

As your financial situation changes, revisit your repayment plan annually. Income-driven plans require annual recertification, providing an opportunity to adjust based on current circumstances.

How will resuming student loan payments for 2025 affect my credit score?

Resuming student loan payments for 2025 can significantly impact your credit score, primarily through the way you manage these payments. One of the most direct and beneficial effects of resuming payments is the potential boost to your credit score from consistent, on-time payments.

Payment history is a crucial component of credit scoring models, accounting for about 35% of your total score. By making regular, timely payments, you demonstrate financial responsibility and reliability, which can improve your credit score over time. Additionally, having a mix of credit types, including installment loans like student loans, can positively influence your credit profile.

Conversely, missing payments or making late payments when student loan payments resume can negatively impact your credit score. Even a single late payment can cause a noticeable drop in your score, as payment history is heavily weighted in credit calculations. Delinquent payments are reported to credit bureaus and can remain on your credit report for up to seven years, making it challenging to secure new credit or loans in the future. 

Can I refinance or consolidate my student loans?

Borrowers managing multiple loans might consider refinancing or consolidating to simplify repayment and potentially secure more favorable terms. Federal consolidation combines existing loans into a single Direct Consolidation Loan, which can streamline payments while potentially affecting interest rate discounts and forgiveness eligibility. Alternatively, refinancing through private lenders may offer competitive interest rates, but this process replaces federal loans with private ones and consequently forfeits benefits like income-driven repayment options and access to deferment or forbearance. Evaluate your long-term financial goals carefully before proceeding, and refer to guidance from EdFinancial for detailed insights.

Should I Prioritize Early Repayment or Invest Surplus Funds?

When evaluating whether to pay off your student loans early or invest extra funds, compare your loan interest rate against your expected investment returns. Early repayment can reduce overall interest costs and shorten your repayment period, whereas a well-chosen investment portfolio may offer higher long-term gains if market conditions are favorable. Additionally, for borrowers seeking to enhance their income potential, pursuing further education—such as an accelerated associates degree—might provide a strategic advantage for future earning capacity. Assess your risk tolerance, liquidity needs, and long-term financial goals before deciding on the appropriate strategy.

What career options can support sustainable student loan repayment?

Exploring career paths that align with long-term financial stability can bolster your ability to manage student loan debt effectively. Assessing opportunities that offer consistent income, benefits, and clear growth trajectories is essential when planning for future financial obligations. Borrowers might consider roles in emerging sectors where flexible work arrangements are increasingly common—for instance, earning qualifications through the best degree to work from home program can open doors to remote employment with competitive salaries. Meticulous career planning, tailored to your financial goals and personal strengths, can enhance repayment capacity and contribute to overall financial resilience.

Can I leverage tax deductions and advanced education opportunities to ease my loan burden?

Eligible borrowers may reduce their overall financial strain by exploring tax deductions on student loan interest, which can lower taxable income and provide annual savings. Additionally, advancing your education through accelerated programs — such as a fast track degree — can boost earning potential and contribute to more effective loan repayment strategies. These approaches, when integrated into your broader financial plan, offer complementary benefits that may help mitigate long-term debt costs.

Is affordable online education a viable option for working adults managing student loan debt?

For working adults facing the dual challenge of managing student loan repayments and balancing career demands, affordable online education can present a strategic alternative. By transitioning to programs designed with flexibility and cost-efficiency, borrowers may reduce tuition expenses and maintain steady income while upgrading skills. Evaluating options such as the most affordable online colleges for working adults can empower professionals to pursue quality learning without incurring excessive financial burdens.

Is fixed or variable interest rate better for my student loans?

When evaluating student loan interest options, assess how stability and market fluctuations may impact your overall repayment strategy. Consider the long-term predictability of fixed rates compared to the potential savings of variable rates based on economic conditions and individual risk tolerance. For a detailed comparison, refer to Is fixed or variable-rate better for student loan? to make an informed decision tailored to your financial goals.

Are there any loan forgiveness or loan relief programs available?

Yes, there are several loan forgiveness and relief programs available for federal student loan borrowers. Here are some of the key programs:

Public Service Loan Forgiveness (PSLF)

This program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. Qualifying employers include government organizations, not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code, and other types of not-for-profit organizations that provide certain types of qualifying public services.

Teacher Loan Forgiveness

This program offers forgiveness of up to $17,500 on Direct Subsidized and Unsubsidized Loans and Subsidized and Unsubsidized Federal Stafford Loans if you teach full-time for five complete and consecutive academic years in a low-income school or educational service agency and meet other qualifications.

Income-Driven Repayment (IDR) Plan Forgiveness

Under IDR plans (such as Income-Based Repayment, Pay As You Earn, and Revised Pay As You Earn), any remaining loan balance is forgiven after 20 or 25 years of qualifying payments. The specific term depends on the plan and whether the loans were for undergraduate or graduate study.

Temporary Expanded Public Service Loan Forgiveness (TEPSLF)

This program provides additional flexibility to borrowers who were initially ineligible for PSLF because some or all of their payments were not made under a qualifying repayment plan. TEPSLF allows these borrowers to receive forgiveness if they have made 120 qualifying monthly payments under an expanded list of repayment plans.

Closed School Discharge

If your school closes while you’re enrolled or soon after you withdraw, you may be eligible to have your federal student loans discharged when student loan payments resume.

Total and Permanent Disability Discharge

Borrowers who are totally and permanently disabled may qualify to have their federal student loans discharged. This program requires proof of disability from a physician, the Social Security Administration, or the Department of Veterans Affairs.

Borrower Defense to Repayment

If your school misled you or engaged in other misconduct, violating certain state laws, you may be eligible for discharge of your federal student loans through the Borrower Defense to Repayment program.

Perkins Loan Cancellation and Discharge

If you have a Federal Perkins Loan, you may be eligible for cancellation of up to 100% of the loan if you work in certain professions, such as teaching, nursing, or public service.

What rights do I have as a student loan borrower?

As a student loan borrower, you have several important rights designed to protect you and help you manage your loans effectively when student loan payments resume. Here are the key rights you should be aware of:

Right to Information

• Loan Terms. You have the right to receive detailed information about the terms and conditions of your loan before you accept it. This includes the interest rate, fees, repayment schedule, and the total amount you will repay.
• Disclosure. You must receive a disclosure statement with this information before your loan is disbursed.

Right to Repayment Options

• Repayment Plans. You have the right to choose from several repayment plans, including standard, graduated, extended, and income-driven repayment plans.
• Change Plans. You can switch to a different repayment plan if your financial situation changes.

Right to Grace Period

• Post-Graduation. You are entitled to a grace period after you graduate, leave school, or drop below half-time enrollment before you must begin repaying your federal student loans. This period is typically six months.

Right to Deferment and Forbearance

• Deferment. If you meet certain criteria, such as being enrolled in school at least half-time, experiencing economic hardship, or serving in the military, you may qualify for deferment, which temporarily postpones payments without accruing interest on subsidized loans.
• Forbearance. If you don’t qualify for deferment, you may be eligible for forbearance, which also temporarily postpones or reduces payments but typically accrues interest on all types of loans.

Right to Loan Forgiveness and Discharge

• Forgiveness Programs. You may qualify for loan forgiveness programs, such as Public Service Loan Forgiveness (PSLF), Teacher Loan Forgiveness, or forgiveness under an income-driven repayment plan.
• Discharge. Under certain conditions, such as school closure, disability, or borrower defense to repayment, you may have the right to have your loan discharged, meaning you are no longer required to repay it.

Right to Repayment Assistance

• Loan Servicer Support. Your loan servicer must provide assistance and answer your questions about your loan, repayment options, and eligibility for deferment, forbearance, and forgiveness programs.
• Complaint Resolution. If you encounter issues with your loan servicer, you have the right to file a complaint with the Federal Student Aid Ombudsman Group or the Consumer Financial Protection Bureau (CFPB).

Can additional certifications boost my career prospects to ease student loan burdens?

Pursuing targeted certifications can enhance your skill set and open pathways to higher-paying roles, contributing to improved financial stability. Strategic career development through specialized training may not only increase your earning potential but also position you for faster repayment or refinancing options. Consider exploring certifications for good paying jobs offered by reputable institutions to secure a competitive edge in the job market.

What should I do if I can't afford my student loan payments for 2025?

If you anticipate struggling to afford your student loan payments for 2025, it’s essential to take proactive steps to avoid delinquency or default, which can have severe financial repercussions. Here’s what you can do:

Contact Your Loan Servicer Immediately

Your loan servicer can help you explore alternatives if you cannot make your payments. They may guide you toward temporary relief options such as deferment, forbearance, or adjusting your repayment plan.

Consider Income-Driven Repayment Plans

Income-Driven Repayment (IDR) plans can significantly reduce your monthly payments by basing them on your income and family size. If you’ve already enrolled in an IDR plan, ensure your income information is up-to-date to reflect any changes for 2025.

Apply for Temporary Payment Relief Programs

Federal loans offer deferment and forbearance options under certain circumstances. For example, unemployment deferment allows you to temporarily suspend payments while you’re looking for a job. Be mindful that interest may continue to accrue during these periods, depending on the loan type.

Explore Loan Forgiveness Eligibility

Check if you qualify for any loan forgiveness programs such as the Public Service Loan Forgiveness (PSLF) or Teacher Loan Forgiveness programs. These programs can relieve you of some or all of your loan balance after meeting specific criteria.

Seek Help if You Face Unique Credit Challenges

If your financial situation is further complicated, for example, by parental credit history, additional resources may be helpful. For instance, students wondering, "Can I get a student loan if my parents have bad credit?" can find tailored solutions through expert recommendations provided by trusted resources like Research.com.

Budget Strategically

Reassess your financial priorities to make room for student loan payments. Cut back on discretionary expenses and consider strategies like side gigs to increase income.

Stay Alert to Scams and Fraudulent Offers

If someone promises to eliminate your student loan debt for a fee, exercise caution. Only work with verified federal loan servicers or trusted financial advisors to manage your loans.

Taking these steps not only helps you stay in control of your loans but also protects your financial health in the long run.

How can part-time students finance their education for 2025?

For part-time students, funding education often poses unique challenges compared to full-time attendees. Unlike full-time students who might have access to broader financial aid packages, part-time learners need to explore tailored options to effectively manage their tuition and associated costs.

One viable solution is applying for part-time student loans, which are specifically designed to meet the financial needs of students pursuing education on a less-than-full-time basis. These loans often come with flexible terms, enabling borrowers to manage their payments while balancing work, school, and personal commitments. Federal student loans, for instance, allow part-time students to qualify as long as they meet the minimum enrollment requirements set by their school.

Private lenders also offer part-time student loan options, though the terms and eligibility criteria often vary. When exploring private loans, focus on key aspects like interest rates, repayment terms, and any fees associated with the loan.

For those wondering how to apply for part time student loans, Research.com provides a detailed guide that outlines the best options and steps to secure funding. This resource can be particularly useful for comparing loan options, understanding interest rates, and determining the most affordable solutions based on your financial situation.

Additionally, part-time students may qualify for scholarships and grants, which do not need to be repaid. Many organizations offer financial awards based on academic merit, field of study, or demographic eligibility. Combining scholarships, grants, and part-time student loans can create a balanced financial strategy to cover tuition and other expenses.

Lastly, it’s important for part-time students to communicate with their school’s financial aid office. Schools can provide insight into institutional aid programs, payment plans, or additional resources specific to part-time learners. Being proactive and informed can significantly reduce the financial burden of pursuing education part-time.

What are my options if my credit score is low?

Borrowers with limited or low credit scores may find it challenging to access traditional refinancing options at competitive rates. In such cases, alternative financing solutions designed for individuals with credit constraints can help mitigate these challenges. Evaluate non-traditional lenders and specialized loan products that offer flexible repayment terms and consider comparing their offerings with conventional options. For example, reviewing options like dental loans for bad credit can provide insights into how tailored loan products adjust eligibility criteria to better serve borrowers with adverse credit profiles. Conduct a thorough analysis of interest rates, fees, and overall terms to determine the best financing solution that aligns with your financial goals.

What should I do if my loan servicer remains unresponsive?

If your loan servicer consistently fails to address your inquiries or resolve issues, document every communication attempt and utilize all available channels—phone, email, and online portals. If the lack of response continues, file a formal complaint with the Consumer Financial Protection Bureau or your state attorney general’s office. Additionally, consult with a financial counselor or student loan ombudsman for further guidance. In parallel, consider exploring cheapest online college options to enhance your qualifications and strengthen your long-term financial stability.

Key Findings

• Student loan payments restarted on October 1, 2023, concluding a lengthy pause that started during the COVID-19 pandemic.
• For the 2024-2025 school year, undergraduate loans have an interest rate of 6.53%, up from 5.50% last year. 
• On average, borrowers with a Bachelor's degree accumulate a debt of $29,400. 
• Among those making student loan payments, 65% pay up to $299 a month.
• Due to unaffordability, 56% of student loan borrowers are unable to repay their debts. 
• Additionally, 18.4% of eligible student borrowers have applied for loan forgiveness.

Other Things You Should Know about When Student Loan Payments Resume

Will student loan repayment be extended?

As of now, there has been no announcement regarding an extension of the student loan repayment pause. Borrowers should prepare for repayments as scheduled.

Are student loans paused again for 2025?

There is no indication that student loans have been paused again for 2025. Payments are expected to continue as resumed in October 2023.

Has interest on student loans resumed?

Yes, interest on student loans has resumed following the end of the payment pause on October 1, 2023.

What happens if I don't resume my student loan payments?

If you don't resume your student loan payments, several consequences can occur. Interest will continue to accrue on your loan, increasing the total amount you owe. Also, your loan will become delinquent after missing a payment. Delinquency can negatively impact your credit score.

References: 

1. Federal Reserve Bank of Philadelphia. (2023). Student loan payments resumption. Federal Reserve Bank of Philadelphia.
2. NerdWallet. (2023). Student loan debt: 2023 statistics and outlook. NerdWallet.
3. Papandrea, D. (2023, June 12). Federal student loan interest rates increase for 2024-2025. Money.
4. The Motley Fool. (2023). Student loan debt statistics in 2023. The Motley Fool.
5. Education Data Initiative. (2023). Student loan forgiveness statistics. Education Data Initiative.