When will student loan payments resume if debt ceiling bill is approved? Is forgiveness an option?

Millions of Americans could soon have to resume making student loan payments under the terms of a debt ceiling bill before Congress.

The measure, finalized by President Joe Biden and House Speaker Kevin McCarthy to avoid a government shutdown, would lift a pause on student loan payments that’s been in place since the early days of the COVID-19 pandemic.

“The pause is gone within 60 days of this being signed,” McCarthy said on Fox News, though the bill actually has a timeline for the end – 60 days after June 30. That would put the end date on Aug. 30, though it is possibly payments wouldn’t resume immediately following that date as the Education Department may need extra time to prepare for processing.

The bill suspends the debt limit until January 2025. It now heads to Congress for a vote.

Even before the deal, White House officials indicated the payment moratorium was about to be lifted.

“We do plan on making sure it’s a smooth reentry to repayment,” Education Secretary Miguel Cardona said. “The emergency period is over and we’re preparing our borrowers to restart.”

What about Biden’s student loan forgiveness plan?

The debt ceiling bill and Biden’s plan to dismiss billions in student loans are two separate things.

The Biden plan currently before the Supreme Court would cancel up to $10,000 in student loan debt for those making less than $125,000 or households earning less than $250,000. People who received Pell Grants in college are eligible for up to $20,000 in loan forgiveness.

The plan, announced last August, has been held up in courts for months and a Supreme Court expected in the near future. The exact date of the decision isn’t known but the court typically goes on break in mid to late June and issues its opinions prior to that time.