Debt Ceiling Deal Would Reinstate Student Loan Payments
The legislation would require the administration to begin collecting student loan payments from millions of people by the end of the summer.
For millions of Americans with federal student loan debt, the payment holiday is about to end.
Legislation to raise the debt ceiling and cut spending includes a provision that would require students to begin repaying their loans again by the end of the summer after a yearslong pause imposed during the coronavirus pandemic.
President Biden had already warned that the pause would end around the same time, but the legislation, if it passes in the coming days, would prevent him from issuing another last-minute extension, as he has already done several times.
The end of the pause would affect millions of Americans who havetaken out federal student loans to pay for college. Across the United States, 45 million people owe $1.6 trillion for such loans more than Americans owe for any kind of consumer debt other than mortgages.
The economic impact of the pandemic has faded since President Donald J. Trump first paused student loan payments in March 2020. Many Americans lost their jobs at the outset of the public health crisis, undercutting their ability to repay their loans on time. The number of jobs in the United States now exceeds prepandemic levels.