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Student loan repayment begins soon as SCOTUS decision looms

  • / Updated:
  • Staff Report 

As millions of Americans anxiously anticipate a Supreme Court ruling on President Biden’s Student Loan Relief plan, due either on Tuesday, June 27 or in the fall, it’s clear that the hiatus in student loan payments will soon come to an end.

With interest accruing starting September 1st and payments recommencing in October, financial advisors caution borrowers about the severe repercussions of defaulting on these loans.

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Experts say even missing a single payment could damage a borrower’s credit score. A loan appears in default on credit reports if the borrower falls behind by approximately nine months.

For those worried about affording these payments, several programs could potentially modify or ease your balance.

Additionally, employment in a government agency or non-profit organization could make borrowers eligible for the Public Service Loan Forgiveness Program, which forgives student debt after 10 years. Regardless of individual circumstances, Rodriguez stressed the importance of factoring these payments into your budget now to prepare for the upcoming resumption of payments.

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