Biden admin resumes interest on student loans after pandemic pause, payments still suspended

The Biden administration's pandemic-related effort to defer the cost of Americans' federal student loans ends Friday, with interest resuming.

The Supreme Court ruled earlier this summer overturned President Biden's debt cancellation policy. And those who have an outstanding loan must start repaying it next month.  

The administration is attempt to help those who will have to re-budget the money after a several-years pause, with a years-long grace period and lower monthly payments being considered, according to ABC News. 

"We recognize that the return to repayment mandated by Congress may cause significant financial challenges for many borrowers, many of whose lives may have changed since the last time they made a student loan payment, or this may be the very first time making a payment," the Education Department told the news outlet.