Student loans will restart regardless of government shutdown

The Biden administration plans to proceed with the resumption of student loan payments in October, regardless of whether there is a government shutdown.

Interest on most federal loans started accruing again on September 1. Previous government shutdowns have not impacted student loan repayments. However, there was speculation that the resumption of payments would cause issues with the process.

Some people were simply hoping the government would use the shutdown to pause student loan repayment. The Biden administration has aggressively sought to pause and even forgive student loans. The Biden Administration’s loan forgiveness program aimed to forgive up to $10,000 in federal student loans for most eligible borrowers and up to $20,000 for Pell Grant recipients however it was overturned by the Supreme Court this summer. Since that decision, the administration has forgiven loans through other methods but not at the scale they had hoped.

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