The Student Loan Freeze Is Ending. Here’s What You Need to Know

The debt ceiling deal has been a hot topic here at The Root and for good reason. Republicans were able to win a ton of concessions for agreeing not to tank the United States’ economy—and one of those giveaways was an end to the student loan freeze.

So what exactly does that mean for you if you have student loans? Allow us to break it down.

After a three-year pause, federal student loan bills will resume on October 1st. That gives people the rest of the summer to prepare to pay their loans again. The end of the student debt freeze also means that interest will once again start accruing on your loans.

Things have changed since the world stopped in 2020, and any number of factors (i.e., a new addition to the family or a new job) could impact your student loan payments. The U.S. Department of Education’s Loan Simulator can help you calculate how much you should be paying per month and the best loan repayment plan. You can also speak with your loan service officer about finding the right repayment option.

As you’ll likely recall, Biden initiated a pretty sweeping student loan forgiveness plan, canceling up to $20,000 of student debt for people making less than $125,000 a year individually and $250,000 for married couples.

However, thanks to multiple court challenges, the plan is still very much in limbo. The fate of thousands of student borrowers now rests with the Supreme Court. And unfortunately for those borrowers, things aren’t looking great. We’ll likely get an official decision from the Supreme Court this month.

We’re The Root, so you know we’ve got to talk about the racial implications here. Black borrowers (especially Black women borrowers) hold a massively disproportionate amount of the nation’s student debt. Black women with a bachelor’s degree have an average of $38,000 in student loan debt. And Black women with a master’s degree have an average of $58,000 in student loan debt.

Pay inequity is a huge part of the issue here. Working-aged Black women in 2020 with a bachelor’s degree or higher working full-time had median earnings of $60,681 compared to $91,805 for white men, $75,329 for Black men, and $67,324 for white women.

For many borrowers, it’s truly a black hole, says Howard University Lecturer Jo Von McCalester. “You pay, and you pay, and you keep paying, and you pay some more,” she says. “And getting out of that hole is almost impossible.”

The end of the freeze (like most things in this country) will be felt disproportionately by Black borrowers. And all eyes will now turn to what happens next at the Supreme Court.