On Friday, June 30, 2023, the Supreme Court issued its 6-3 ruling to strike down the student loan forgiveness plan. After months of watching, waiting, & speculating, we now have our answer. There will be no blanket $10-20K debt cancelation for federal student loans when repayment resumes in October.

What does this mean for you? Whether or not you were eligible for student loan forgiveness, now is the time to start preparing for loan repayment. Student loan repayment will resume in October 2023. Interest accrual on student loans resumes on September 1, 2023.

You should receive your loan billing statement & due date 21 days before payment. It is essential to log on to your account at https://studentaid.gov/ & make sure all your contact info is updated. It’s possible that your original loan was sold since the repayment pause began in 2020 & you may now have a new loan servicer. You can find out who your loan servicer is by logging into your profile at https://studentaid.gov/.

Start preparing your household budget to accommodate loan repayment now. Consider putting your payment amount in a savings account to adapt to your budget in October, when payments will be due again. At the very least, this exercise helps you mentally prepare and is a great way to add money to your emergency fund.

As always, we will continue to monitor any developments & keep you informed. For now, (it seems) this issue has been settled.

References

https://www.supremecourt.gov/opinions/22pdf/22-506_nmip.pdf

https://www.wsj.com/articles/supreme-court-strikes-down-bidens-student-loan-forgiveness-plan-54a1ca7