Student loans: How borrowers should prepare after the Supreme Court ruling
Last week the Supreme Court ruled against the Biden administration's plan to cancel billions in federal student loans. That means 45 million student loan borrowers must start repaying those loans on October 1.
GETTING READY
To prepare for that day, make sure that you're in touch with your loan servicer to confirm your personal information, loan amounts, interest rates, and payment plans. Also enroll in auto-debit, which will keep you on track.
IF YOUR SITUATION HAS CHANGED
If your financial situation has changed, go to StudentAid,gov and use the Loan Simulator to determine if a different repayment plan better meets your needs or if consolidation might help. There are income-based plans as well as public service loan forgiveness programs that can help.
ON-RAMP
President Biden also announced the "Temporary On-Ramp" program. For one year, starting October 1st, people who miss student loan payments won't go into default, won't be referred to a debt collection agency, and won't take a hit to their credit score.
