What to know about student loan repayments during a government shutdown

The federal government could shut down beginning this weekend, just as student loan repayments are restarting Sunday for more than 40 million Americans. And while observers worry the return to repayments will be messy, White House and Education Department officials said Friday the process will continue according to plan – at least for a few weeks.

In a press call Friday, officials said repayments will return as planned and mandated by Congress this past summer. 

“If Republicans needlessly shut down the government, we anticipate that key activities and Federal Student Aid will continue for a couple of weeks,” said Zayn Siddique of the White House Domestic Policy Council in a press call Friday. “Federal Student Aid plans to continue to engage with borrowers to help them know their options, and will continue to support them in the coming weeks.” 

However, he continued, funding could run out. “A prolonged shutdown, lasting more than a few weeks, could substantially disrupt the return to repayment effort and long-term servicing support for borrowers,” Siddique said. 

To ease the return, the department created a 12-month on-ramp during which borrowers will be immune from penalties if they miss payments.

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How do I manage my student loans during a government shutdown? 

The Federal Student Aid Information Center will likely be closed during a government shutdown. Borrowers can get information they need about their payment plan, FASFA form or other services from their loan servicers or at studentaid.gov. 

Some people, such as those applying for final loan forgiveness through the Public Service Loan Forgiveness program, will likely see delays during a shutdown. 

Do you have to pay your student loan if the government closes?

With a few days away from the restart of student debt repayments, advocates are calling on the Biden administration to once again pause debt repayments.

“If the federal government shuts down, interest and payments on federal student debt should come to a halt too,” said Braxton Brewington, spokesperson for the Debt Collective, which advocates for forgiveness, in a statement. “Millions of Americans already can’t afford to make payments in October, and the Biden administration’s second attempt at administering student debt relief likely won’t be enacted until next year. As workers face massive furloughs and essential benefits … are torn away, the last thing working families need is a costly student debt payment the government hasn’t needed in almost four years.”

Melissa Byrne, executive director of WeThe45Million, said in a statement that the student loan payments and the subsequent economic slowdown of a government shutdown will have a real impact on the personal finances of millions of Americans. “If the federal government closes, so should the collection on student debt,” said Byrne. 

Rep. Ayanna Pressley (D-Mass.) Wednesday called on the Biden administration to pause student loan payments once again if the government shuts down.