When Do You Have to Start Paying Student Loans?

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School isn’t the only thing back in session; loan repayments are too. For many borrowers, it’s crucial to understand the key dates, the consequences of not paying, and how to manage your budget effectively during this transition. We know it’s a scary time out there. Here are some important tips on what to consider. 

When will repayments begin?

There has been significant uncertainty surrounding the resumption of federal student loan payments. However, the U.S. Department of Education has confirmed that after a three-year moratorium:

  • Federal student loans will start accruing interest again on September 1st.
  • First payments are due in October.

Here’s a link with more info that you can bookmark.

What Happens If You Don’t Pay Student Loans

With payments resuming, it’s essential to be aware of the consequences of non-payment. Here’s what you’ll want know:

  • Failure to make your monthly student loan payments can lead to default, damaged credit, and even legal actions. 
  • To avoid these consequences, it’s crucial to be proactive in managing your student loans. 
  • What can you do? You can apply for student loan forgiveness, repayment plan, or see other ideas.

Habits to help manage student loans 

Resuming student loan payments can add unwanted financial strain to your life. The key is effectively managing your money—and loans.  Here are a few ideas you’ll want to consider: 

  • Find Your Student Loan Servicer: Identify the company that manages your student loan payments, as they will provide essential information regarding your repayment options. Your mortgage servicer is the company that sends you your mortgage statements and handles the day-to-day tasks for managing your loan.
  • Contact Your Servicer: Reach out to your loan servicer to discuss repayment plans, understand your monthly payment amount, and inquire about potential relief options if you’re facing financial hardship.
  • Budget Adjustments: Review your budget to make necessary adjustments. Cutting back on non-essential expenses like dining out or multiple streaming subscriptions can free up funds for your student loan payments.
  • Consider Income-Driven Repayment Plans: If your income is limited, explore income-driven repayment plans. These plans base your monthly payment on your earnings, making it more manageable.
  • Explore Forgiveness Programs: Research forgiveness programs such as Public Service Loan Forgiveness and Teacher Loan Forgiveness, which can help reduce or eliminate your student loan debt if you qualify.
  • Increase Income Sources: Look for part-time jobs, freelancing opportunities, side businesses, or gig economy work to boost your income and ease the burden of student loan payments.

How to Save Money on Your Loans

1. Refinance your loan

Lowering your interest rate can significantly reduce the cost of repaying your student loans. 

  • Consider refinancing your loans with private lenders to potentially secure a lower interest rate, saving you money over the life of the loan. 
  • Keep in mind that refinancing federal loans with a private lender may mean losing certain federal benefits, so weigh the pros and cons carefully.

PRO TIP! To potentially save more money on a different interest rate, you can also refinance your loan with our MoneyLion’s partners.

2. Consolidate Your Loan

Loan consolidation can simplify your repayment process by combining multiple loans into one, resulting in a single monthly payment.

Remember, extending your repayment term through consolidation may lower your monthly payments but could lead to paying more interest in the long run. Want to consolidate your loan? Check out debt consolidation loan offers.


As federal student loan payments resume, being prepared and informed is essential. 3 takeaways to remember:

  1. Key dates: Federal student loans will start accruing interest again on September 1st. First payments are due in October.
  2. Paying back student loans: Non-payment can damage your finances, such as your credit score. If you need help, you can request student loan forgiveness or repayment plan.
  3. Save money on your loans: You can potentially save interest by refinancing your interest rate in your loan or consolidating your debt.

Remember, you’re not alone in this journey. We want to help; download the MoneyLion app to help access various resources and programs to support you in managing your student loan debt and achieving financial stability.

Check out our student loans video :point_down: and don’t forget to download the MoneyLion app to get more tips, content and offers.


Can you make early payments on your student loans to reduce interest?

Yes, you can make early payments on your student loans to reduce the amount of interest you pay over time. By making additional payments, you can pay off your loans faster and save money on interest charges.

Can you consolidate your student loans to make repayment easier?

Yes, you can consolidate your federal student loans through a Direct Consolidation Loan. Consolidating your loans can make repayment easier by combining multiple loans into one loan with a single monthly payment. You can potentially lower your monthly payment by extending your repayment term, but you’ll want to be aware you may pay more in the long run by taking longer to repay.

What should you do if you experience a change in income and can’t afford your student loan payments?

If you experience a change in income and can no longer afford your student loan payments, contact your loan servicer as soon as possible. You may be eligible for various options, such as an income-driven repayment plan, deferment, or forbearance. Explore all of your options and find a solution that works for your unique situation.

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