{"id":8790,"date":"2023-07-06T15:06:55","date_gmt":"2023-07-06T19:06:55","guid":{"rendered":"https:\/\/scholarshipowl.com\/blog\/?p=8790"},"modified":"2023-07-06T15:07:50","modified_gmt":"2023-07-06T19:07:50","slug":"preparing-for-student-loan-repayment-what-to-do-now-and-how-to-avoid-taking-on-future-student-debt","status":"publish","type":"post","link":"https:\/\/scholarshipowl.com\/blog\/paying-for-college\/preparing-for-student-loan-repayment-what-to-do-now-and-how-to-avoid-taking-on-future-student-debt\/","title":{"rendered":"Preparing for Student Loan Repayment – What to Do Now, and How to Avoid Taking on Future Student Debt"},"content":{"rendered":"

Last week, the Supreme Court made a momentous decision impacting both students and student loan borrowers.\u00a0<\/span><\/p>\n

The Supreme Court struck down the Biden Administration\u2019s student debt forgiveness plan in Biden v. Nebraska, concluding that the Secretary of Education does not have authority under the Higher Education Relief Opportunities for Students Act of 2003 (HEROES Act) to establish a student loan forgiveness program. The Biden Administration\u2019s student debt forgiveness plan was expected to provide debt relief of $10,000 to $20,000 for over 40 million of student loan borrowers, and many of these borrowers made financial decisions based on the expectation that they would benefit from the program.<\/span><\/p>\n

Due to the COVID-19 pandemic, student loan payments have been paused since March 2020, but payments will resume this fall, with the first payment due on October 01, 2023. There is significant concern that borrowers will struggle to make their payments, and that many will default on their loans.\u00a0<\/span><\/p>\n

A few hours after the Supreme Court\u2019s decision was announced, President Biden delivered remarks regarding future plans to support borrowers, and to help ease the transition to repayment:<\/span><\/p>\n