Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Student Loans Student Loan Repayment The Current State of the Student Loan Repayment Pause in March 2025 Updated Mar 01, 2025 10-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Catherine Collins Written by Catherine Collins Expertise: Budgeting, Mortgages, Credit, Debt, Personal loans, Small business, Entrepreneurship Learn more about Catherine Collins Reviewed by Erin Kinkade, CFP® Reviewed by Erin Kinkade, CFP® Expertise: Insurance planning, education planning, retirement planning, investment planning, military benefits, behavioral finance Erin Kinkade, CFP®, ChFC®, works as a financial planner at AAFMAA Wealth Management & Trust. Erin prepares comprehensive financial plans for military veterans and their families. Learn more about Erin Kinkade, CFP® The student loan repayment pause under the CARES Act brought significant financial relief to Americans during the pandemic. This act and subsequent student loan pause extensions enabled Americans to skip student loan payments without penalty. Now, in 2025, many people wonder about the current state of student loan repayment—and its future. Keep reading; we’ll share information about the student loan repayment pause, discuss legal challenges affecting student loan forgiveness, and explain what the future holds for student loan repayment. We’ll also provide resources if you want to stay up to date on student loan repayment plan news or find community support as you navigate the student loan repayment process. Table of Contents Overview of the student loan repayment pause When do student loan payments resume? Legal challenges and income-driven repayment plans Future outlook for student loan repayment Overview of the student loan repayment pause In March 2020, the World Health Organization declared COVID-19 a pandemic. The pandemic caused a widespread economic crisis. To provide financial relief, Congress passed the Coronavirus Aid, Relief, and Economic Security Act, more commonly known as the CARES Act. This Act gave Americans $2.2 trillion in economic aid. The aid included business grants, additional unemployment benefits, and a student loan payment pause with no interest accruing. The student loan payment pause was initially set to last through September 30, 2020, but President Trump extended the repayment pause through January 2021. President Biden then took office on January 20, 2021. On his first day in office, President Biden extended the payment pause through September 30, 2021. He went on to extend the repayment pause several times during his presidency until Congress passed a law that prevented more extensions. Federal student loans started accruing interest again in September 2023, and payments resumed in October 2023. Are student loans still on hold? No, student loan payments are not still on hold. When the repayment pause ended in October 2023, borrowers had a one-year on-ramp period during which they weren’t penalized for missing payments. However, as of October 2024, there is no repayment pause and no on-ramp period, so servicers will report late payments to the credit bureaus. It’s important to make your payments on time to maintain good credit. If you’re experiencing financial hardship, you can call your student loan servicer and ask what repayment options are available so you can avoid defaulting on your student loans. Forbearance and deferment If you need to put your student loans on hold, you still have options. Even though the official student loan freeze is no longer available, you can pause your student loan payments through forbearance or deferment. Before pursuing these options, it’s important to research both to understand the long-term impact it can have on your finances. Here is more information: Forbearance: You can pause student loan payments for up to 12 months, but interest still accrues on your student loans, which can cause the balances to increase. To qualify, you might need documentation to show that you’re experiencing financial challenges. Deferment: You must meet specific requirements to defer student loans, such as being on active duty or undergoing cancer treatments. If you qualify, your Direct Subsidized Loans do not accrue interest. Much like the student loan payment extension, your student loans do not go away if you enter into forbearance or deferment. The major downside is your total student loan balance could increase if you use forbearance. However, if you need to pause your student loan payments while you get back on your feet, these options can help. When do student loan payments resume? Federal student loan payments resumed in October 2023 after several repayment pause extensions, which lasted over three years. Presidents Trump and Biden both extended the payment pauses. When the payment pause ended, the federal government gave borrowers a one-year grace period, where creditors weren’t allowed to report late payments to the credit bureaus. However, the grace period is over. If you’re late making student loan payments, it can be detrimental to your credit rating: Your payment history is 35% of your score. If you’re having trouble making your payments, it’s important to speak with your student loan servicer. You may be able to enroll in a different income-driven repayment program, which can help you better afford your payments. Another option is to refinance your student loans with a private lender that offers lower monthly payments, but that option has several drawbacks. Student loan services To reach your student loan servicer, here are the phone numbers for the main servicer currently processing student loan payments: Loan ServicerPhone NumberEdfinancial1-855-337-6884MOHELA1-888-866-4352Aidvantage1-800-722-1300Nelnet1-888-486-4722ECSI1-866-313-3797Default Resolution Group1-800-621-3115 (TTY: 1-877-825-9923 for audio help for the hard of hearing)CRI1-833-355-4311 Implications of the new Trump administration on repayment policies In January 2025, Donald Trump began his second presidential term. Based on President Trump’s first term and comments he made during his campaign, he does not support widespread student loan forgiveness. Borrowers should not expect student loan forgiveness this term unless they are pursuing Public Service Loan Forgiveness (PSLF). A review of President Trump’s budget proposals during his first term showed he requested eliminating the PSLF forgiveness program multiple times. If he proposes eliminating PSLF again, it’s likely that those who are already enrolled in the program will be grandfathered in. It’s important to note that President Trump has not yet released an official plan for the future of student loans. He’s proposed eliminating the Department of Education and has talked about reforms, such as streamlining repayment plans. Legal challenges and income-driven repayment plans In 2023, President Biden created the Saving on a Valuable Education (SAVE) Plan. This new income-driven repayment plan was designed to help many borrowers lower their student loan payments. However, enrolling the millions of borrowers who opted into the plan came with challenges, namely student loan servicer administration challenges. In addition to the SAVE program, you might consider several other income-driven repayment options. In April 2024, several states filed lawsuits to stop the SAVE plan from being implemented. The lawsuit stated that the Department of Education didn’t have the authority to implement the SAVE plan without approval from Congress. The case reached the U.S. Supreme Court, which decided not to lift an injunction that would have allowed SAVE to progress. Because of that, the SAVE Plan is still blocked. The 8 million borrowers who enrolled in it are still unsure of the future of their monthly payments. Impact on borrowers Right now, student loan borrowers who enrolled in the SAVE plan are in limbo. Federal Student Aid says current borrowers who enrolled in SAVE are in general forbearance with no payments due and no interest accruing. The website said borrowers will eventually be moved back to repayment, but that likely won’t be complete until December 2025. President Trump has not commented specifically on the SAVE plan. He has previously approved student loan forgiveness initiatives, but he has stated he’s against broad student loan forgiveness. In his first term election, CNBC reported that President Trump wanted to consolidate income-based repayment plans. He has not commented on this in his second term. Tip For the most up-to-date information on the SAVE plan, visit the SAVE Plan Court Actions page. Future outlook for student loan repayment If you’re a federal student loan borrower, you might feel anxious about the future of loan repayment. The best way to combat that uncertainty is to stay up to date on student loan policy changes, do your research, and ask for help from experts when needed. Identify your student loan servicer, which is the company that takes and processes your student loan payments, and call its customer service line if you have questions. If your servicer makes a mistake or won’t resolve a dispute, you are entitled to make a complaint to the Consumer Financial Protection Bureau (CFPB) or call the bureau at 1-855-411-2372. You can also check specific websites that provide up-to-date information on student loan forgiveness and any other policy changes. Here are the best resources: The Department of Education website The Federal Student Aid website The NASFAA website (National Association of Student Financial Aid Administrators) If you are currently relying on the SAVE plan but now face challenges due to legal challenges, closely monitor developments to stay informed of any changes. Additionally, proactively prepare a budget and savings plan to ensure you are financially prepared for the resumption of payments. It is also important to assess eligibility for loan forgiveness programs and to consult with advocacy organizations and legal experts who are closely tracking these issues and providing guidance. Finally, remain prepared to take prompt action once the details of the repayment plan are clarified. Erin Kinkade , CFP®, ChFC® Student loan support and advice If you want further support or advice about student loan repayment strategies, here are options that can help: The National Foundation for Credit Counseling (NFCC): This nonprofit employs over 1,500 certified credit counselors who offer advice and strategies on student loan repayment. Money Management International (MMI): This is another nonprofit that offers counseling on a number of personal finance topics, including student loan repayment. The XY Planning Network (XYPN): Hiring a financial advisor is another way to get trusted advice. The XY Planning network maintains a list of advisors, and working with one could be more affordable than you realize. You can even filter advisors by topic expertise, including student loan debt. Reddit r/studentloans: While Reddit is not an official source of financial advice, and you should always do your due diligence, it is a place where you can connect with other student loan borrowers. There, you can get real-time updates on information other borrowers receive and ask for advice. How to manage student loan bills Because the future of student loan repayments is uncertain, and the Trump administration is not in favor of widespread student loan forgiveness, it’s smart to be proactive about creating a debt payoff plan. Explore repayment strategies, create a budget to monitor your spending, and set goals to allocate extra money towards student loan payments. Once you have a student loan repayment strategy in place, you can look forward to a future free from student loan payments. This can help you plan for future goals, such as traveling, purchasing a house, and investing for retirement. Even if it takes a few years to pay down your student loan debt, it’s worth it not to worry about student loans again.