Source: Foundation for Economic Education
by Peter Jacobsen
“In March 2020, President Donald Trump announced a pause on federal student loan payments. The economy was about to shut down (mostly due to government policy), so it seemed fair to suspend the obligation on the part of students to repay the government. Nobody imagined that this would last as long as five years for some borrowers. During the Biden administration, generosity toward student loan holders expanded. One major addition was the SAVE Plan — a very generous repayment plan which capped interest and offered payments as low as $0 per month. … For most borrowers, interest forgiveness continued for about three and a half years, with interest accumulation restarting around September 2023. However, borrowers were given another year without penalties for non-payment (except for the interest accumulation). Borrowers on the SAVE Plan, however, were allowed to remain in interest-free forbearance, where they still are, until next month.” (07/27/25)
https://fee.org/articles/the-student-loan-interest-pause-finally-ends/