June 30, 2023
What does today’s decision by the Supreme Court on student loan forgiveness mean for you?
Three big things.
First – and most importantly it means the entire student loan forgiveness program as it was laid out by President Biden – is dead. It’s not happening. It’s not coming back, even if you got an approval letter saying your loan would be forgiven by the department of education. And there is no appetite in Congress to actually pass any law that would broadly forgive your federal student loans.
Second – your student loan payments will resume in October. But interest on your federal student loan debt will begin accruing again in September.
Third – between now and then, you should check in with studentaid.gov. A lot has changed since the forbearance program started at the beginning of the pandemic. You may have gotten a new student loan servicer, your financial situation may have changed and there may be new income driven repayment programs that you now qualify for.
Plus – the President has been working for months on additional *new* income driven repayment programs that include – for some qualified borrowers – zero dollar monthly payments. Now, those aren’t available yet, but now that the Supreme Court has issued this ruling, I’m sure we’re going to start hearing more about them
