Supreme Court Rules Against Student Loan Relief

July 14, 2023

by Christian Phillips

In August 2022, President Biden proposed up to $20,000 in student loan relief for millions of qualified borrowers. According to a recent Supreme Court ruling, the Biden Administration overstepped authority when attempting to cancel or reduce student loan debt.

What does this mean for borrowers?
This means student loan interest will resume on September 1^st, 2023, and payments will be due as of October 1^st, 2023. Before the Supreme Court ruling, millions of students took advantage of interest-free federal payment pauses for over three years.

Will there be additional extensions? Due to a provision in the debt ceiling deal, federal payment pause extensions are no longer in question.

Plan Ahead:
Have you been saving for your monthly student loan payments despite the interest-free federal payment pause? It is recommended to start planning and allocating funds toward student debt responsibilities. Contact your federal student loan servicer to implement a repayment strategy that aligns with your financial situation.

[Final Thoughts]
Continue to be proactive during this transition back into student loan repayment. If you can afford more than the minimum monthly payment, budget a higher installment to repay the loan faster. Understandably, repaying student loans can be financially restrictive, but it is essential to maintain all levels of debt. Remember, delinquencies in repayment can affect future credit inquiries such as auto loans and mortgages.

Supreme Court Rules Against Student Loan Relief

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