Federal student loan payments resumed in October 2023 after a pause that lasted nearly three years

In March 2020, the Department of Education stopped collecting payments on federal student loans and set the interest rate to zero as a response to the COVID-19 pandemic. This pause continued through the Trump administration, which ended in January 2021, and extended into the Biden administration. The pause was not a Trump-specific policy — it began under Trump but was extended multiple times by both administrations and Congress.

When the Biden administration took office, it continued the payment pause and eventually announced it would end on September 1, 2023. That date was pushed back to October 1, 2023, when payments and interest accrual resumed for the first time since March 2020. If you had federal student loans during the Trump years, your payments were not being collected, but your loans were not forgiven or cancelled.

Key Takeaways

  • The payment pause on federal student loans began in March 2020 under the Trump administration as a pandemic response and continued through his term.
  • Payments and interest remained frozen for nearly three years total, across both the Trump and Biden administrations.
  • The pause ended on October 1, 2023, when the Department of Education resumed collecting payments and charging interest on federal loans.
  • Loans were paused, not cancelled — borrowers still owed the full balance when payments resumed.

How the payment pause worked during the Trump administration

Starting March 13, 2020, the Department of Education automatically paused payments on most federal student loans. Borrowers did not have to request the pause or take any action — it applied to their accounts by default. The interest rate on these loans was set to 0%, meaning no new interest was being added to the balance.

This pause covered federal loans held by the Department of Education, including Direct Loans, Stafford Loans, PLUS Loans, and Consolidation Loans. It did not cover private student loans, which are issued by banks and other private lenders rather than the federal government. If you had private loans, your payments and interest continued as normal.

During the pause, you could still make voluntary payments if you wanted to, but you were not required to. Many borrowers used this time to catch up on other bills or build emergency savings. The pause remained in effect through the end of the Trump administration in January 2021.

What changed when payments resumed

On October 1, 2023, federal student loan payments and interest accrual restarted. Borrowers who had not made a payment since March 2020 were required to resume payments on their regular schedule. The interest rate returned to the rate set in your loan documents — typically between 4% and 8% depending on the loan type and when it was issued.

The Department of Education sent notices to borrowers before the restart date, but many borrowers reported not receiving clear information about when and how to resume payments. If you were unsure whether your loans were affected, you could check your account on studentaid.gov or contact your loan servicer directly.

Borrowers who were in default before the pause began were not automatically brought current when payments resumed. If you had missed payments before March 2020, you remained in default status, though the Department of Education did offer a limited window to bring accounts current without penalty.

The difference between a pause and forgiveness

The payment pause was temporary relief from making payments, not permanent cancellation of the debt. Your loan balance did not decrease during the pause — it stayed the same because no interest was being charged. When payments resumed, you still owed the full amount you borrowed, plus any interest that had accrued before the pause began.

Forgiveness programs, by contrast, actually reduce or eliminate the balance you owe. The Biden administration announced a separate student loan forgiveness program in August 2022, which was a different policy from the payment pause. That forgiveness program faced legal challenges and did not go into effect as originally planned.

Federal loans versus private loans during the pause

Only federal student loans were affected by the payment pause. Private student loans, issued by banks, credit unions, and other lenders, were not paused. If you had private loans, you continued making regular payments and accruing interest throughout the entire pause period.

You can tell whether a loan is federal or private by logging into studentaid.gov or checking your loan documents. Federal loans are issued by the Department of Education or may provide by it. Private loans show a bank or lender name as the issuer.

What to do if you have questions about your loans

If you are unsure whether your loans were paused, whether they have resumed, or what your current balance is, you can check your account on studentaid.gov. This website shows all federal loans held by the Department of Education, your current servicer, and your payment status.

You can also contact your loan servicer directly — the name appears on your loan statements and on studentaid.gov. Servicers handle billing and payment collection on behalf of the Department of Education. They can tell you your current balance, your monthly payment amount, and your repayment plan options.

Frequently Asked Questions

Did Trump cancel student loans?

No. Trump did not cancel student loans. He implemented the payment pause in March 2020 as a temporary measure during the pandemic. The pause meant borrowers did not have to make payments and no interest was charged, but the loans were not forgiven or cancelled. Borrowers still owed the full balance when payments resumed.

Are private student loans the same as federal loans?

No. Private loans are issued by banks and other lenders, while federal loans are issued by the Department of Education. The payment pause only applied to federal loans. If you have private loans, you continued making payments during the entire pause period. You can check which type you have on studentaid.gov.

What happens if I could not afford to resume payments in October 2023?

The Department of Education offers several repayment plans that can lower your monthly payment, including income-driven plans that base your payment on what you earn. You can change your repayment plan at any time by contacting your loan servicer or updating your plan on studentaid.gov. You can also request a temporary pause called forbearance if you are facing hardship.

Can I get back the interest that was not charged during the pause?

No. The pause was a temporary benefit that applied while it was in effect. Interest that was not charged during the pause period will not be refunded or credited to your account. When payments resumed, interest began accruing again at your loan's standard rate.