MAY 31: Rep. Alexandria Ocasio-Cortez (D-NY).Anna Moneymaker/Getty Images Interest will start accruing on student loans in September ahead of payments restarting in October. Borrowers will have a 12-month "on-ramp" period for missed payments, but interest will still grow. Rep. Alexandria Ocasio-Cortez urged Biden to pause interest once payments resume. Interest will soon start accruing on student-loan borrowers' balances after President Joe Biden's broad debt cancellation was struck down.