Many Americans have student loans that they have been paying off for years and continue to find themselves in the crosshairs with all of the changes and promises.
In fact, more than 40 million borrowers are in the process of paying their debt, with an average balance of more than $37,000, according to Education Data.
President Joe Biden started rolling out programs to help ease the burden, and for those who want to take advantage of these benefits, there are several dates to keep in mind to avoid missing crucial deadlines.
Student loan forgiveness will be decided by the US Supreme Court, which has been reviewing the measure since November 22. It is scheduled to rule on the loan forgiveness plan on June 30. If the Court gives the go-ahead to the program or is unable to decide by this date, those who have outstanding loans may receive loan forgiveness shortly after the ruling. If the Justices vote against it, the government will have to reevaluate the initiative.
The extension of the student loan moratorium is scheduled to lapse 60 days after June 30 or the actual day the US Supreme Court decides on the student debt program, whichever comes first. Federal student loan repayments would resume around August 30, unless the government decides to prolong the moratorium.
The US Government announced the Income-Driven Repayment Adjustment, which aims to provide millions of borrowers with retroactive credit toward student debt forgiveness under IDR plans. The Education Department will give an adjustment that will apply to previous repayment periods. This initiative’s effectivity date is currently set at December 31.
Sources: Various news outlets