Pressing Play on Student Loan Payments: How Collections & Recovery Departments Must Prepare

Will the end of the pause on Federal student loan repayments cause economic turmoil? We’re about to find out.

Many pandemic-era relief programs are ending this month, including the pause on Federal student loan repayment and 0% interest rates. Borrowers who have not made payments on those loans are expected to start repaying once again on the first day of October, and interest has already started accruing again.

Borrowers also did not get another source of relief they expected: the Supreme Court blocked the Biden Administration’s plan to forgive up to $20,000 in Federal student loans for those who qualified.