The Countdown Clock for Student Loan Forbearances

Research Brief

July 2023 Update: The U.S. Supreme Court struck down the Biden Administration’s onetime federal student loan forgiveness program on June 30, 2023. Interest will resume accruing on Sept. 1 and payments will be due starting in October 2023. Late or missed payments will not be reported to credit bureaus or referred for collections until October 2024. A new income-based repayment plan called SAVE has also been announced. For more information, click here.

Report Summary

After more than three years of no-interest deferrals on federal student loans, the last major borrower assistance program of the COVID-19 era is slated to end in August 2023. Depending on the resolution of federal forgiveness initiatives, at least 14 million consumers are expected to begin having to make monthly payments. Yet at-risk borrowers may be unaware of the approaching deadline, and federal budget constraints are limiting outreach and call center resources.

This Research Brief summarizes the issues facing borrowers as the deadline approaches and the steps that borrowers, servicers, federal actors, and counselors can begin taking to prepare for rapid changes this fall. Consumer engagement and administrative flexibility could help to provide smoother transitions for millions of households and the broader U.S. economy.


FinRegLab is grateful to Jeremy Hochberg for his assistance in preparing and drafting this Research Brief.

Related Publications

  • This report surveys the options that are available to consumers who are struggling with unsecured debt, including available research on the options’ scope and outcomes. It provides an overview of market and policy challenges as stakeholders ponder strategies to help consumers recover more quickly from personal and broader economic crises such as COVID-19.

    LEARN MORE: Debt Resolution Options for Distressed Borrowers: Market & Policy Context
  • Debt Management Insights for Distressed Borrowers

    FinRegLab is working with teams at The Ohio State University and Charles River Associates to evaluate new workout structures and data and technology applications for consumers who are struggling with unsecured credit. The project will use data from pilots organized by the National Foundation for Credit Counseling and other sources. Learn More

About FinregLab

FinRegLab is an independent, nonprofit organization that conducts research and experiments with new technologies and data to drive the financial sector toward a responsible and inclusive marketplace. The organization also facilitates discourse across the financial ecosystem to inform public policy and market practices. To receive periodic updates on the latest research, subscribe to FRL’s newsletter and visit Follow FinRegLab on LinkedIn and Twitter (X). | 1701 K Street Northwest, Suite 1150, Washington, DC 20006