RICHMOND, Va. — After the Supreme Court struck down President Joe Biden's one-time student loan forgiveness program last month, there’s one thing for certain: repayments will be due for millions of borrowers very soon.
Student loan interest will resume on Sept. 1, and payments will be due starting in October, according to the Department of Education.
Borrowers with federal student loans haven't had to make payments or worry about accrued interest since March 2020.
CBS 6’s Brendan King spoke to Jennifer Finetti, director of student advocacy for ScholarshipOwl. Finetti and her team help students discover the right scholarships for them.
She recommends logging on to StudentAid.gov to update your contact information since some borrowers may have moved since payments were stopped.
Finetti also suggests getting ahead and start making payments now so you know how the additional bill will impact your budget.
“I would suggest that everyone contact their loan servicer and find out about different payment plan options,” she stated. “If you do not ask about payment plan options, you may be dumped into the standard repayment plan or maybe into the repayment plan you were in a few years ago before the payment pause.”
Despite the Supreme Court decision, the Biden administration is working on ways to still help borrowers and their financial situations.
More than 800,000 borrowers with $39 billion in federal student loans will get their debt forgiven, CBS News reported.
CBS News reports the plan is related to a separate effort by the Biden administration to improve income-driven repayment plans (IDRs), which are designed to reduce student loan monthly payments by pegging a person's payment amount to their income.
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