Nearly 9 Million Borrowers Missed First Student Loan Payment After Pause

The Department of Education explained that bringing so many borrowers back into repayment at the same time was expected to be a challenge.

Nearly 9 million borrowers missed their first student loan payment after the pandemic pause was lifted.

That means around 40% of the 22 million borrowers who had bills due in October did not make payments by mid-November.

In comparison, less than 26% of borrowers missed their payment in October of 2019, before the pause went into effect.

The Department of Education explained that bringing so many borrowers back into repayment at the same time was expected to be a challenge.

The department shared they understand it may take time for some borrowers to figure out how much they owe each month and work it into their budget after the long pause.

Thanks to an on-ramp period created by the Biden administration, borrowers who miss payments through September of 2024, won’t face significant penalties. During that period, borrowers won’t be reported as delinquent or in default to the three national credit bureaus. But interest will continue to accrue.