Student loan repayment is set to resume in two weeks — expert believes freeze will remain

Two weeks from today, the federal student loan repayment moratorium is scheduled to expire. That means federal student loan borrowers will once again have to make payments toward their debt after a long hiatus that began at the start of the Covid-19 pandemic in March 2020.

The most recent moratorium extension was signed on April 6 by President Biden, setting an end date of Aug. 31, however, the administration has been vague as to whether the repayment pause will be extended further.

Below, Select takes a look at why the student loan moratorium may continue, and what else student loan borrowers should keep in mind going forward.

After nearly two-and-a-half years of student loan forbearance there's a good chance President Joe Biden will extend the deadline beyond Aug. 31, says Tara Miller, a student loan consultant at GradFin.

"I do think that they will announce another extension, likely next week," Miller told Select. Her justification is based on reports that loan servicers were told to not reach out to borrowers regarding repayment, even as the deadline quickly approaches.

The Biden administration has not provided any significant or concrete answers regarding the possibility of further extensions. The president said in a press conference on Apr. 28 that he would have an answer regarding student loans "in the next couple of weeks." Fast forward to mid-August, and there still hasn't been a substantial announcement from the White House or the Department of Education regarding the matter.

On a CBS News appearance on Tuesday, United States Secretary of Education Miguel Cardona said his department was speaking to the White House daily about the repayment pause, but couldn't provide any specifics. Select also reached out to the U.S. Department of Education but has not yet received a response.

However, in the student loan Facebook group "Surviving Student Debt," some borrowers have reported that their servicers are stating that they will owe their next payment in the coming weeks. This could be in part because the issuers have programmed their borrower's profiles to rely on the current mandate from the White House — rather than speculation that the repayment pause won't be extended.

If the predictions are correct and student loan forbearance does actually continue, Miller encourages borrowers to be proactive about their loans even if payments aren't required. At the very least, she says, they should know who their servicer is and make sure their contact information is up to date so they'll be notified of any changes regarding student loan repayment or forbearance.

Miller also advises looking into student loan forgiveness programs such as Public Student Loan Forgiveness or any other government-funded programs that may be at your disposal.

If your student loans remain in forbearance with no accruing interest, it may be best to keep them where they are. Otherwise, when it's time to pay them back, consider refinancing so you can secure a better interest rate or repayment plan. Note, however, that if you do choose to go the refinancing route, you'll waive all federal protections from the government, including any possibility for student loan forgiveness.

Here's a look at some of Select's favorite student loan refinancing servicers:

The future is still uncertain for those with federal student loans. From the possibility of loan forgiveness to the worries of millions of borrowers who may soon have to resume making their monthly payments, the federal government certainly isn't making things clear.

Miller says borrowers should prepare themselves for payments to resume, rather than having to rely on government-enacted forgiveness. "Borrowers should make plans to pay off their loans without taking into account forgiveness until an official announcement has been made," she recommends.

Whatever happens, it's important to evaluate your current financial goals and situation to determine the next steps you're able to take with your student loans. Consider refinancing if you have private student loans or setting aside cash in a high-yield savings account that you can use toward repayments if they do restart.

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*Fixed rates range from 4.49% APR to 10.99% APR with 0.25% autopay discount and 0.125% SoFi Plus discount. Variable rates range from 5.74% APR to 10.99% APR with 0.25% autopay discount and 0.125% SoFi Plus discount. Unless required to be lower to comply with applicable law, Variable Interest rates will never exceed 13.95% (the maximum rate for these loans). SoFi rate ranges are current as of 9/23/26 and are subject to change at any time. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. You may pay more interest over the life of the loan if you refinance with an extended term.

Autopay Discount: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly payments as outlined in your loan agreement by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. When the autopay interest rate deduction is added or removed, the next time the loan is re-amortized (quarterly for fixed rate loans; monthly for variable rate loans),the principal balance of your loan will be spread over the remaining loan term, and your monthly payment amount will change. This benefit is suspended during periods of deferment, grace period, or forbearance. Autopay is not required to receive a loan from SoFi. Member Rate Discount: To be eligible for an additional 0.125% interest rate reduction on a Student Loan Refinancing, you must, within 31 days of loan funding, either (1) be a SoFi Plus subscriber, (2) receive an Eligible Direct Deposit into a SoFi Checking or Savings account, or (3) receive at least $5,000 in Qualifying Deposits into a SoFi Checking or Savings account. You must continue to meet at least one of the above eligibility criteria every 31 days to maintain the discount. See the SoFi Plus terms for details on SoFi Plus subscription. For more details on Eligible Direct Deposit or Qualifying Deposits, please see https://www.sofi.com/legal/banking-rate-sheet. Once you become eligible during the initial period, the discount will be removed or reinstated depending on whether the criteria have been met. Each time your loan is re-amortized, your monthly payment amount will change based upon the interest rate that was in place. SoFi reserves the right to modify or terminate this offer at any time for unenrolled participants. You are not required to meet these criteria to be approved for a loan. SoFi Plus Discount: To be eligible to receive an additional (0.125%) interest rate reduction on your Student Loan Refinancing (your "Loan") for enrolling in SoFi Plus, you must enroll in SoFi Plus within 30 days of Loan funding, either by receiving an Eligible Direct Deposit to your SoFi Checking and Savings account, or by paying the SoFi Plus Subscription Fee. Once eligible, you will receive this discount during periods in which you have received Eligible Direct Deposit to your SoFi Checking and Savings Account, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount lowers your interest rate but does not change the amount of your regular monthly payment. This discount will be removed during periods in which SoFi determines you have turned off Eligible Direct Deposit to your Checking and Savings account or in which you have not paid the SoFi Plus Subscription Fee. SoFi reserves the right to change or terminate this interest rate reduction offer for unenrolled participants at any time without notice. You are not required to enroll in Eligible Direct Deposit or to pay the SoFi Plus Subscription Fee to be eligible for Loan approval. See what qualifies as an Eligible Direct Deposit here: www.sofi.com/terms-of-use/#slr-discount
Eligible Direct Deposit means regularly recurring deposit of regular income to an Automated Clearing House ("ACH") Network during a 30-Day Evaluation Period (as defined below). Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not generate payments that are detectable by our system. So qualifying direct deposits are those where the student loan refinance discount rate is applied automatically for each month where you have an Eligible Direct Deposit of at least $1,000 per 30-day Evaluation Period. Eligible Direct Deposit does not include transfers between accounts you own, refunds, rebates, reimbursements, stimulus payments, merchant refunds, or payments from person-to-person payment services (such as Venmo). To qualify for the 0.25% interest rate reduction, the direct deposit must be recurring and paid directly into a SoFi Checking or Savings account. For the avoidance of doubt, deposits made via check, cash, or mobile check deposit are not eligible. Direct Deposit eligibility is determined by SoFi's sole discretion. The 30-Day Evaluation Period refers to the period starting on the "Start Date" and ending on the "End Date" set forth on the App Details page of your account, which comprises a period of 30 calendar days (the "30-Day Evaluation Period"). You can access the APV Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking → Checking → APV or (ii) Banking → Checking → APV Details. If you do not qualify for the discount during the initial 30-Day Evaluation Period, your loan will not be eligible for a discount unless you re-qualify in a later 30-Day Evaluation Period. If you qualify during the 30-Day Evaluation Period, the discount will be applied on a going-forward basis only. SoFi Bank determines eligibility. If you have a joint account, each account holder receives Eligible Direct Deposits into your SoFi Checking and Savings account, then you will be eligible for all SoFi Plus benefits, including on accounts you hold in your own name. Federal Loan Disclosure: Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELiIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligiblity. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).