• Home
  • Resources and Tips
    • Digital Resources
    • Physical Resources
    • Hints and Tips
  • Education
  • IT
  • Learning in the future
  • Schools
  • Students
  • Tech in education
What's hot

How to use Microsoft Designer

March 29, 2023

The Latest Threat to Loan Forgiveness Shouldn’t Worry Borrowers

March 29, 2023

Alpine School District explores potential closure of 5 elementary schools – KSL.com

March 29, 2023

Sign the Pledge to Our Keiki, Pledge to Respect, Protect Hawaiʻi for… – hawaii.edu

March 29, 2023
Facebook Twitter Instagram
  • Home
  • Contact us
  • Privacy policy
  • Terms & Conditions
Facebook Twitter Instagram
Teaching Resources Pro
  • Home
  • Resources and Tips
    • Digital Resources
    • Physical Resources
    • Hints and Tips
  • Education

    How to Empower Your Employees During the Great Resignation

    March 29, 2023

    Garbology is the study of waste. That’s why students love it

    March 27, 2023

    US Department of Education launches Your Place in Space Challenge

    March 25, 2023

    Virginia teacher shot by student says she’ll ‘never forget the look on his face’

    March 23, 2023

    What do you know about Armenia?

    March 21, 2023
  • IT

    Java Garbage Collection Redesign Would Improve Performance

    March 29, 2023

    How to create custom images with Podman

    March 25, 2023

    Why Veeam thinks ransomware collateral payouts are unlikely

    March 23, 2023

    ForgeRock and Secret Double Octopus Offer Passwordless Authentication for Enterprises

    March 21, 2023

    Microsoft adds an AI productivity bot to the 365 suite

    March 17, 2023
  • Learning in the future

    Sign the Pledge to Our Keiki, Pledge to Respect, Protect Hawaiʻi for… – hawaii.edu

    March 29, 2023

    Commonwealth Bank and Schools Plus invite applications for… – CommBank

    March 27, 2023

    Iowa faces challenges retaining teachers – Local 5 – weareiowa.com

    March 25, 2023

    ‘Investing in their future education alongside buying a house’: Children… – Sky News Australia

    March 23, 2023

    State of school feeding in the world 2022 – World – ReliefWeb

    March 21, 2023
  • Schools

    Alpine School District explores potential closure of 5 elementary schools – KSL.com

    March 29, 2023

    Biden administration calls for end to corporal punishment in schools – Disability Scoop

    March 27, 2023

    BAFD visits schools to share safety tips with students – Reuters

    March 25, 2023

    Hilton Schools Bomb Threat Centered On LGBTQ Book Found In School Libraries – 13WHAM-TV

    March 23, 2023

    Akron’s plans to play acts, STEM schools raising concern among parents – WJW FOX 8 News Cleveland

    March 21, 2023
  • Students

    The Latest Threat to Loan Forgiveness Shouldn’t Worry Borrowers

    March 29, 2023

    10 tips for taking crash courses

    March 27, 2023

    10 part-time jobs for graduate students

    March 25, 2023

    5 tips to help you choose your university – Student Life Network Blog

    March 23, 2023

    Women’s History Month – SJSU

    March 19, 2023
  • Tech in education

    How to use Microsoft Designer

    March 29, 2023

    5 Key Considerations for a Professional Development Program

    March 27, 2023

    Websites that add sparkle (and learning) to Spring

    March 25, 2023

    Classworks adds IEP goals, objectives, and easy tracking to CASE-approved platform

    March 23, 2023

    Breaking the Barriers to Literacy: Using Audiobooks to Overcome Reading Difficulties

    March 21, 2023
Teaching Resources Pro
Home»Students»When will student loan repayment actually start?
Students

When will student loan repayment actually start?

February 9, 2023No Comments5 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email

The latest federal student loan payment extension and interest break was undoubtedly a victory for borrowers, but the new rules are confusing.

The big question for many borrowers should have an easy answer. When should I make payments again?

Unfortunately, there is no simple answer. Many complicating factors are at play: the break could end on June 30. It could end before then. When the pause ends, the payments don’t actually start. There could be another extension.

If you’re a borrower trying to do some financial planning, this confusion complicates things.

The Supreme Court will decide the date of resumption

After numerous payment pause extensions from the Biden and Trump administrations, we now find ourselves in a situation where the Supreme Court will decide when payments will resume…sort of.

When the courts suspended Biden’s one-time pardon program, the administration extended the payment and interest break. They wanted borrowers to have certainty about the rebate program before bills were due.

Previous expansions had a specific end date. This time, the payment break ends when the Supreme Court rules on the single discount plan or June 30…whichever comes first.

The timing of the Supreme Court decision

We know that the oral arguments in the single pardon case will take place on February 28.

Unfortunately, this nugget of information does not tell us when the Supreme Court will render its decision. After the hearing, the judges will discuss the case and vote on the decision. At this stage, judges will be selected to write majority and, if necessary, minority opinions. This process can take months.

Based on previous timelines from other court sessions, we can expect a decision from the Supreme Court by the end of June. The Biden administration choosing June 30 does not seem like a coincidence.

It is certainly possible that the court will issue a decision quickly because of the importance of the case. However, judges move at their own pace, and any cases that make it to the Supreme Court tend to be big ones.

Sherpa Tip: Don’t assume the outcome of the student loan forgiveness case. Many borrowers fear the Biden administration will lose in a right-wing Supreme Court.

However, the importance of this case goes far beyond student loans. At the heart of the case is the question of who is entitled to take legal action against the government. A ruling against the Biden administration could open the door to many new lawsuits, which will likely involve the Supreme Court.

A two-month warning for borrowers and services

The end of the student loan payment pause and the date when payments resume are different dates. Payments will resume two full months after the pause ends.

On the surface, this plan seems silly. If borrowers are not required to make payments, payments are still suspended.

Logical gymnastics is necessary in this case because the government has granted so many extensions. In fact, two of the previous expansions were called “final” expansions. They don’t have much credibility when drawing a line in the sand.

By putting a two-month gap between the end of the pause and the start of payments, borrowers and providers should be given advance notice that the Covid relief is actually ending.

September 1st is the best estimate for the resumption of payments

Based on their track record, the Supreme Court will likely rule on the pardon sometime in mid to late June. Although they haven’t ruled, the hiatus is set to end on June 30.

If we move forward two months from our Supreme Court decision projection, we are on August 30.

However, it should be noted that not all borrowers will have payments due on the same day. Our payment terms are staggered throughout the month. This policy will continue on reboot. So, if your monthly payment was due on the 10th, your first payment due will probably be September 10th.

It should be noted that September 1 is a best estimate and nothing more. If the Supreme Court rules on June 15, borrowers will have bills due between August 15 and September 15, depending on their billing cycle.

If the Supreme Court decides to speed things up, it could hand down its judgment in April or May. In this case, payments will resume much sooner.

The chances of another expansion

After seeing the Biden administration issue several “final” extensions that weren’t final, I’m hesitant to say this won’t happen again.

That said, I would be surprised if there was another one.

The timing of the restart is a political calculation more than anything. If another extension is granted, it brings the restart of the election cycle closer to 2024. Biden and Democrats don’t want voters heading to the polls angry at the rebate restart. If they restart things by September 2023, voters will likely have something newer to get angry about.

As a federal student borrower, I expect my budget to be tighter in September.

Steps to take now

A continued reprieve from student loan repayments is great, but borrowers can’t afford to do nothing during this time.

Here are some actions that should happen long before the reboot:

  • Investigate IDR number update – Many borrowers will move significantly closer to loan forgiveness due to a one-time IDR payment update. However, some borrowers must act before May deadline.
  • Ask your questions now – Calling your loan manager is rarely a pleasant experience, but things will be awful when bills are in the mail on reboot. Resolving repayment and forgiveness plan questions today will save you a lot of time in the future.
  • Update your contact details – Have you moved in the last three years? Make sure invoices and notices are sent to your current address. Servicers have no sympathy for borrowers who were unaware of the bill’s due date. Updating contact information may appear to be doing your repair person a favor, but in reality, you are protecting yourself.
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

The Latest Threat to Loan Forgiveness Shouldn’t Worry Borrowers

March 29, 2023

10 tips for taking crash courses

March 27, 2023

10 part-time jobs for graduate students

March 25, 2023
Add A Comment

Leave A Reply Cancel Reply

Latest

How to use Microsoft Designer

March 29, 2023

The Latest Threat to Loan Forgiveness Shouldn’t Worry Borrowers

March 29, 2023

Alpine School District explores potential closure of 5 elementary schools – KSL.com

March 29, 2023

Sign the Pledge to Our Keiki, Pledge to Respect, Protect Hawaiʻi for… – hawaii.edu

March 29, 2023

Subscribe to Updates

Get the latest creative news from teachingresourcespro.

We are social
  • Facebook
  • Twitter
  • Pinterest
  • Instagram
  • YouTube
  • Vimeo
Don't miss

How to use Microsoft Designer

March 29, 2023

The Latest Threat to Loan Forgiveness Shouldn’t Worry Borrowers

March 29, 2023

Alpine School District explores potential closure of 5 elementary schools – KSL.com

March 29, 2023

Subscribe to Updates

Get the latest creative news from teachingresourcespros.

  • Home
  • Contact us
  • Privacy policy
  • Terms & Conditions
© 2023 Designed by teachingresourcespro .

Type above and press Enter to search. Press Esc to cancel.