Education Department confirms student loans will restart even if government closes

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“Even if Republicans needlessly shut down the government, loan payments will continue to be due” starting in October, an Education Department spokesperson said in a statement to POLITICO on Thursday, responding to calls from some progressives to delay the effort.

Interest on most federal loans began accruing again on Sept. 1, and about 28 million borrowers will be expected to make a payment in October, according to the department. Some borrowers have already received bills in advance of their individual payment due date, which vary across the month.

The department has not yet publicized an updated contingency plan that details how it would curtail its operations in the event of a government shutdown. But officials have confirmed that the agency has enough funding to continue “key” student aid activities, including collecting and managing student loans, for “a couple weeks.”

“A prolonged shutdown lasting more than a few weeks could substantially disrupt the return to repayment effort,” White House press secretary Karine Jean-Pierre said on Monday.

Rep. Ayanna Pressley (D-Mass.) on Wednesday said the Biden administration should freeze student loan payments again if the government shuts down.

Mike Pierce, executive director of Student Borrower Protection Center, a student debt advocacy group, issued a similar plea: “If House Republicans shut down the federal government, the Biden Administration must shut down the student loan system too,” he said in a statement.