After over three years, federal student loan borrowers will likely have to start repaying their debt. According to the terms of a debt ceiling deal struck by House Speaker Kevin McCarthy and President Biden, the extended pause on student loan repayment will end on August 30th.
While a previous announcement from the Education Department had vowed to end the pause on August 29—provided the Supreme Court had not yet released a decision on Biden's student loan forgiveness plan—the debt ceiling deal solidifies this promise. If the bill passes, the Education Department will be statutorily barred from announcing yet another last-minute extension— as officials have done on eight occasions since August 2020, including two separate continuations of supposedly "final" extensions.