To forgive or not forgive: As Supreme Court gears up to rule on student loan cases, Americans are split on debt forgivenessįinding other forgiveness: You can still get student loan forgiveness in these states even if Biden's debt plan fails What if the Supreme Court makes a ruling? “People should know the clock starts ticking and interest starts accruing,” said Scott Buchanan, executive director at the Student Loan Servicing Alliance trade organization. "They should start contacting their servicers now." Without a Supreme Court ruling before June 30, the end of summer is when payments restart, and interest begins adding up again. 31, 2022, but by November, it extended that deadline to either 60 days after the Supreme Court issues a decision on the relief program or 60 days after June 30 – whichever came first. Last August, the administration said the fourth and “final extension” would expire on Dec. Biden extended the pause and its 0% interest rate multiple times despite growing pressure to lift the moratorium.īut last week, in exchange for a raised debt ceiling, the Biden administration agreed, among other things, that it wouldn’t renege on the “final” pause like it did last year. The pause, first implemented by former President Donald Trump, was a welcome relief after COVID-19 sparked an economic downturn that made it more difficult for many who'd borrowed tens of thousands of dollars to pay for their schooling to keep up with payments. In the wake of the debt ceiling deal hammered out between President Joe Biden and House Speaker Kevin McCarthy, millions of former students will see their student loan payments and accrual of interest on those loans resume as early as late August.
For more than three years, tens of millions of federal student debt holders haven’t had to think about saving for or paying off their loans, but that’s all ending very soon.
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