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The Department of Education said that student loan payments will resume in October after a three-year pause due to the COVID-19 pandemic. The agency confirmed to Politico that interest will begin accumulating in September, and the payments will be the following month.
"Student loan interest will resume starting on September 1, 2023, and payments will be due starting in October," an Education Department spokesperson told Politico. "We will notify borrowers well before payments restart."
When borrowers go to pay their bills, they may find they have a new loan service provider because several lenders stopped managing the debt for the government during the pandemic.
"I've heard that almost half of borrowers will have a new servicer when repayment restarts because of servicers having dropped out," higher education expert Mark Kantrowitz told CNBC.
If you are unsure about what company is servicing your student loan, you can check by logging in at StudentAid.gov. If you have a new service provider, you may have to create a new account to make payments.