Student Loans Are Back—Now What? | Thomas Aaron Kane

If you’ve been dreading that monthly student loan bill showing up again, you’re not alone. After a three-year pause due to the COVID-19 pandemic, federal student loan payments officially resumed in late 2024. And now, in the spring of 2025, millions of Americans are readjusting to a reality that many had either put out of mind or hoped might change permanently.

The truth is: student loans are back on the table, and there’s a lot of confusion and stress surrounding what it means for everyday borrowers. So let’s clear the noise and get to the facts—plain and simple.

What Happened?

Federal student loan payments were paused in March 2020 as part of the emergency response to COVID-19. For over three years, borrowers didn’t have to make payments, and interest wasn’t accruing. It was an unprecedented break—and for many, a financial lifeline.

But in October 2024, that pause ended. The Biden administration, after several attempts at forgiveness and policy reform, set a firm restart date. That means interest is accruing again, bills are coming due, and over 40 million Americans are trying to fit student loans back into their monthly budgets.

Key Changes in 2025

Here’s what’s new—or important to know—about student loans right now:

• Payments Are Active Again. If you haven’t already started repaying, expect to get billed. Delinquency (late or missed payments) is now being reported to credit agencies.

• The SAVE Plan Offers Relief. The Saving on a Valuable Education (SAVE) plan replaces older income-driven repayment plans. For many borrowers, this means significantly reduced payments—sometimes as low as $0—based on income and family size.

• Forgiveness Efforts Are Ongoing—But Uncertain. Some borrowers are seeing relief through Public Service Loan Forgiveness (PSLF) or adjustments to IDR (income-driven repayment) timelines. However, widespread one-time forgiveness has hit legal and political roadblocks.

• Interest is Back and Growing. Unlike the pause period, interest is once again being added to balances. If you’re only making minimum payments—or no payments—your loan could be growing instead of shrinking.

How It’s Affecting Americans

The return of student loan payments comes at a tough time. Inflation has pushed up the cost of everything—rent, food, insurance. Wages haven’t kept pace for many, especially early-career professionals who were just getting their footing when the pandemic began.

According to recent surveys, nearly half of borrowers say their budgets are under major strain. Many have had to cut back on savings, delay home ownership, or take on credit card debt just to manage bills. While SAVE has helped some reduce their monthly burden, it hasn’t eliminated the broader anxiety that comes with owing tens—or hundreds—of thousands of dollars.

Thomas Kane’s Take – Keep IT Simple:

Here’s the deal: student loans are real, and they’re back. There’s no magic bullet to make them disappear overnight. Yes, there are programs that can help, and yes, the conversation around forgiveness is still alive—but it’s slow, complicated, and highly politicized.

So what should you do?

• Don’t ignore your loans. That’s how people fall into delinquency and damage their credit.

• Look into the SAVE plan. It could make your payments more manageable.

• Revisit your financial priorities. With loans back, it might be time to adjust spending or rethink big purchases.

• Stay informed. Policies are still evolving, and staying in the loop can help you take advantage of any new relief.

In short: take control of what you can. The system might be flawed, but the best way forward is to face it with a plan—and keep it simple.