Student-loan companies will scramble to adjust and some borrowers could fall into delinquency if Biden extends the payment pause on ‘grossly insufficient notice’, servicing group says Student-loan payments are set to resume in just over a week. The head of a loan servicing group said companies might not be able to implement changes effectively on such short notice. He also warned that borrowers will be "caught massively off guard" if payments end up resuming. Even if President Joe Biden extends the student-loan payment pause, the companies that service those loans say they might not be able to account for that change in a timely manner. In April, Biden extended the federal pause on student-loan payments for his fourth time, through August 31. He is expected to announce an extension of that pause — along with broad student-loan forgiveness — on Wednesday. Both of those announcements come just a week before payments were scheduled to resume, and with loan servicers receiving very little guidance leading up to this point, they have notified the department that any announcement will likely not be implemented as smoothly as it might hope. Scott Buchanan, the executive director of the Student Loan Servicing Alliance — a group that represents federal loan servicers — wrote a letter to Education Secretary Miguel Cardona on Monday to inform him "that any announcement at this late date, less than ten days before the scheduled resumption of September 1, risks operational disruptions.