Student Loan Forbearance Ending

For the past 39 months, student loan borrowers enjoyed a grace period where no principal payments on their loans were required, and interest was not accruing.  Unfortunately for these borrowers, this grace period is coming to an end.  As of September 2023, student loan borrowers will no longer be granted a grace period where principal payments on their loans are waived and interest does not accrue. This change affects over 43 million borrowers in the US, with federal student loan debt exceeding $1.6 trillion. It is crucial for borrowers to plan ahead and consider how this will impact their finances. Check out the information below for more details on the end of forbearance and how to prepare if you are affected.

End of Student Loan Forbearance Facts:

  • The forbearance period ends in August 2023
  • Payments WILL resume in September 2023 (No extension!)
  • Does NOT affect student loan forgiveness case!

How to Prepare:

  • Review your payment options
    • Standard vs. Graduated vs. Income Based, etc.
  • Understand your minimum required payment
  • Start budgeting now!
    • Review fixed and discretionary costs (Be disciplined!)
    • Start cutting discretionary spending
  • Review the interest rate on your debt
    • Compare to other debts
    • Attack higher interest rates first


Don’t miss The Welch Group’s Money Tuesday segment every Tuesday morning on WBRC Fox 6 for valuable weekly insights.


certified financial planner Marshall Clay wears a gray jacket and white shirt while posing for professional photo in officeMarshall Clay CFP, J.D., is a Partner and Senior Advisor at The Welch Group, LLC, specializing in providing Fee-Only investment management and financial advice to families throughout the United States. Marshall is a graduate of the United States Military Academy in West Point, New York, the Cumberland School of Law in Birmingham, Alabama, and is a CERTIFIED FINANCIAL PLANNER™.  In addition, Marshall is a frequent guest on local television stations as an expert on various financial planning matters.


Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by The Welch Group, LLC –(“Welch“), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Welch. Please remember that if you are a Welch client, it remains your responsibility to advise Welch, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Welch is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of Welch‘s current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request or at Please Note: Welch does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Welch‘s website or blog or incorporated herein, and takes no responsibility.