Student loan payments are set to return in coming months.

As part of a debt-ceiling agreement forged by President Joe Biden and House Speaker Kevin McCarthy, monthly bills will resume 60 days after June 30 if the legislation is enacted by Congress.

While that’s roughly the timeline that Biden laid out the last time he extended the moratorium on payments, the legislation would formally end the suspension that has been in place since the start of the pandemic in March 2020. It prohibits the Education Department from using its authority to extend the Coronavirus Aid, Relief, and Economic Security Act’s loan pause, “except as expressly authorized by an act of Congress.”

A representative from the White House said Biden wasn’t planning to extend the moratorium again and could still pause payments in a future emergency.

The federal student loan moratorium, which began under President Donald Trump, has been extended multiple times. McCarthy said Sunday that forbearance is costing the government about $5 billion a month. The average monthly bill before the pandemic was $393 per borrower, and more than 40 million Americans currently have student loan debt.

The debt-ceiling deal doesn’t address Biden’s one-time forgiveness program, which would wipe out up to $20,000 in federal loans per borrower and is currently being weighed by the Supreme Court. That decision is likely to come before the end of June. Biden had said that monthly payments would restart 60 days after the ruling was issued, or no later than the end of August.

Jefferies has said the return of monthly loan payments presents risks similar to the effects of the 2013 fiscal cliff, when tax increases led to reduced consumer spending. And in a note released Monday, JPMorgan’s chief US economist Michael Feroli said that the end of the payment moratorium will reduce annual disposable personal income by $38 billion, which will reduce consumer spending.

Treasury Secretary Janet Yellen has warned the government will run out of money by June 5. The current deal would suspend the debt ceiling until Jan. 1, 2025, and limit federal spending for the next two years. 

This article was provided by Bloomberg News.