Federal Student Loan Repayment Post COVID

The U.S. Department of Education's COVID-19 relief act resulted in a pause on student loan interest accrual and payments for federal direct student loan borrowers.  Federal loans that had been paused as part of the COVID-19 relief act will have the following changes.  Starting September 1, 2023, interest will begin accruing on federal direct loans, and beginning in October 2023 federal direct loan repayment will resume.  You can find additional information at: COVID-19 Emergency Relief and Federal Student Aid.  

Federal direct loans will remain in an in-school deferment status as long as the student is enrolled in at least half-time.  Once a student drops below half-time status, federal direct loan repayment will begin.  If a student has entered federal direct loan repayment and is having a difficult time affording the loan payments, the student may qualify for deferment, forbearance, or an income driven repayment plan.  More details can be found at Federal Student Aid. 

Here are the key points to be aware of:

  • Loan Servicer: your loan servicer can provide personalized assistance with the loan repayment process.  To identify your loan servicer and their contact information use your FSA ID and password to log into studentaid.gov.
  • Interest Resumption: when planning for repayment, be advised that the interest on federal student loans will resume on September 1, 2023.  This interest resumption will impact the loan balance.
  • Repayment Obligations: Monthly loan payments will resume in October 2023.  Specific details about the payment amount and due date will be provided by the loan servicer.
  • Difficulty Affording Payments: an income-driven repayment plan, forbearance, deferment or other options may be available.  Additional information can be found at Federal Student Aid - Loan Deferment.
  • Public Service Loan Forgiveness Program (PSLF):  eligibility for this program includes full-time employment through a qualified public service employer while making 120 qualifying loan payments.  Additional details including eligibility requirements and application information can be found at Federal Student Aid : Public Service Loan Forgiveness (PSLF).

We are happy to assist Gonzaga alumni, former students and current students with issues or concerns around loan interest accrual and loan repayment. Please contact us with any questions or concerns that you may have.