Biden administration officials are devising plans to ease the sting of requiring tens of millions of Americans to resume paying their student loans this fall for the first time in more than three years.
The Education Department in recent weeks finalized a three-month grace period for missed payments once student loans come due in October and directed loan services to be “prepared” to extend that flexibility for subsequent 90-day periods, according to two people familiar with the discussions. Once interest accrual resumes on Sept. 1, under the department’s current plans, it would continue to pile up even if borrowers miss payments.