Student loan forgiveness is still in the air, and the outcome is unclear until at least February of 2023.
Beginning in January 2023, millions of Americans were set to begin repaying their school loans. As a result of the blockages on the student loan forgiveness program, the repayment moratorium has been prolonged until June once more.
Should You Start Paying Your Debt?
Scott Kemp is an advocate for Virginia student loans. He recommends that people who are able should pay down their educational debts.
In August, when the student loan forgiveness program was unveiled, 10 News spoke with Kemp. Six cases have been brought against it since then, resulting in two blocks.
Kemp stated that there are a few things individuals should do in the interim.
They must first ensure that their loan servicer has their contact information. If they continue to struggle with their income and their costs, they can receive a portion of the income-driven payback, Kemp said.
According to the White House, more than 45 million Americans owe a total of $1.6 trillion in student debt, a debilitating burden for many borrowers just beginning the job.
Read more: Student loan: Do you need to start paying your debt in January 2023?
Biden’s Student Loan Forgiveness Program
President Biden unveiled in August a comprehensive plan to cancel federal student loans and execute broad debt relief after years of discussion, months of conjecture, and even more waiting.
Biden’s hallmark student loan forgiveness plan would eliminate $10,000 in federal student loan debt for borrowers earning less than $125,000 per year or $250,000 if they are married a first in history.
Approximately 16 million debtors would be affected, according to some estimates. Pell Grant applicants who earn less than $125,000 per year or $250,000 if they are married are entitled for up to $20,000 in relief.
Even before the first steps of the strategy could be created, legal obstacles have delayed its implementation. In February, the Supreme Court will hear oral arguments about the validity of the long-awaited proposal to alleviate the financial load of tens of millions of borrowers, which faces two main legal challenges.
Read more: Student loan: 9 million applicants receive incorrect emails