Federal Student Loan Payments: What You Need to Know

Posted by City of Philadelphia on August 22, 2023

Due to the COVID-19 pandemic, federal student loan payments were paused in 2020. That pause is ending soon, which will impact thousands of Philadelphians. It is important that borrowers make a repayment plan before the first bill arrives. Here is what you need to know:

Federal student loan payments will resume in October 2023. You will get your bill, with your payment amount and due date, at least 21 days before your due date.

President Biden announced the cancellation of $10,000 of debt ($20,000 for anyone who received a Pell Grant) for certain borrowers. Several states sued to block this cancellation and the Supreme Court ruled that the President could not cancel student loan debt that way. The U.S. Department of Education has begun a new process to try to cancel student loans, but that process will not stop student loan payments from restarting.

Find out everything you need to know about federal student loan payments pause.