Supreme Court Student Loan Decision Coming Soon

Supreme Court Student Loan Ruling: What You Need to Know

On Monday, December 12th, 2022, the U.S. Supreme Court announced it will review two challenges to the student loan forgiveness plan. Lower courts previously blocked the program. Oral arguments are set for February 2023, with a final ruling expected by June 2023.

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During this period, the 8th Circuit Court of Appeals’ injunction remains in place, preventing loan forgiveness from proceeding.

How the Supreme Court Student Loan Decision Affects Borrowers

Borrowers anticipating federal student loan forgiveness need to prepare for different outcomes.

Will Covid-19 Forbearance Extend Until August 2023?

The U.S. Department of Education stated that student loan forbearance will end on August 29, 2023, or 60 days after the litigation concludes.

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Since the Supreme Court ruling is expected in June 2023, loan payments will likely resume around August 2023. If the court delays its decision, the pause on federal student loan payments could extend further.

When Could Student Loan Forgiveness Take Effect?

If the Supreme Court rules in favor of the Biden administration, eligible borrowers could see $10,000 to $20,000 in student loan forgiveness as early as June 2023. However, if the court blocks the program, borrowers must prepare for repayment without relief.

What Borrowers Should Do Before the Supreme Court Ruling

Since the future of student loan forgiveness remains uncertain, borrowers should take these steps:

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  • Stay InformedĀ ā€“ Follow updates on theĀ and its impact on repayment.
  • Review Loan StatusĀ ā€“ Log into yourĀ student loan servicer accountĀ to check your balance and next payment due date.
  • Prepare for PaymentsĀ ā€“ If forgiveness is denied,Ā student loan paymentsĀ will likely resume inĀ August 2023.
  • Explore Repayment OptionsĀ ā€“ ConsiderĀ income-driven repayment plans, loan consolidation, or Public Service Loan Forgiveness (PSLF)Ā to manage debt effectively.

Final Thoughts on the Student Loan Case

The Supreme Courtā€™s decision on student loan forgiveness will determine whether relief moves forward or not. Regardless of the ruling, borrowers should plan ahead, explore repayment options, and stay updated to make informed financial decisions.