On Friday, the Supreme Court ruled against President Joe Biden’s student loan forgiveness plan. This means student debt will still have a chokehold over millions of Americans who previously had a glimmer of hope of seeing up to $20,000 in relief. For anyone benefiting from a pause on their payments since March 2020, your loan interest will resume accruing on Sept. 1, with payments due in October.
If you’re currently scrambling to get your debt repayment plan in order, here’s what the Supreme Court’s decision means for you, as well as what loan forgiveness options may still be on the table.
Find out exactly how much you’re expected to pay
Hopefully, the news today didn’t catch you off guard. Nevertheless, losing the hope of forgiveness puts millions in a stressful, sticky spot. The first step to getting organized: Find out exactly how much you’re expected to pay, when you need to start paying, and where that money needs to go.
As we mentioned at the top, you’ll need to begin repayments this October. Next, to find your loan amount and providers, go to studentaid.gov. (Note: This is not the same portal you may typically use to make student loan payments, e.g., through a servicer like Sallie Mae.) After logging in, select “My Aid” in the dropdown menu under your name. Your loan servicer(s) should appear in that section. Clicking on “Loan Breakdown” will show you a list of the loans you received, including loans you have paid off or consolidated into a new loan.
Once you confirm your loan company, visit that servicer’s website and log in to your account to ensure all your contact information is up to date so you don’t miss any notifications from them during this process.
To recap: It’s your existing loan provider, not the government, that will inform you about any outstanding balance and revised monthly payment amounts.
Those experiencing financial hardships like unemployment or serious medical issues may qualify for loan forbearance or deferment. Borrowers who are unable to make their regular monthly payment should contact their loan servicer as soon as possible to explore options before missing payments.
Check out other loan forgiveness programs
There are still other options available to borrowers for loan forgiveness, and you never know what else you may be eligible for. FSA has a guide here for you to check your eligibility for other government loan forgiveness programs. If you find an option that works for you, take the time now to make sure you’re properly enrolled.
For instance, Public Service Loan Forgiveness (PSLF) forgives the remaining balances for a variety of public service workers, while teachers may be eligible for Teacher Loan Forgiveness.
Outside of those occupation-dependent options, all federal borrowers are eligible to receive loan forgiveness through income-driven repayment (IDR) plans. Compared to other types of loans, IDR plans are based on a borrower’s income, not the amount borrowed. Earlier this year, the Education Department outlined the details of its revised IDR plan, called REPAYE. Here’s how much your payments may drop under the new REPAYE plan, which could officially be available July 1, 2024, with some elements implemented sooner, according to CNBC. Once the new REPAYE Plan is available, borrowers can apply at StudentAid.gov.
And if you’re (understandably!) tempted to just say “fuck it,” here’s what happens if you don’t pay back your student loans at all.
