Here’s What Will Happen to Your Student Loans Now.

"Now that the Supreme Court has blocked President Biden’s student debt cancellation proposal, people with loan balances have two things to watch in the short term," The New York Times reports.

..."First, the pandemic-related pause on monthly payments will end by Sept. 1, with the first payment due in October.

Then, there is the glimmer of hope: The Education Department is trying to put in place a new system of calculating the size of those monthly payments. That could lower the payments for many people. It could also cancel the debt sooner, under a system that’s separate from the one that the Supreme Court disallowed on Friday.

We’ve published a guide to the payment restart here. The Education Department is likely to provide more details soon. 'We urge the department to share any plans as soon as possible so financial aid practitioners are well prepared to assist students,' said Justin Draeger, chief executive of the National Association of Student Financial Aid Administrators."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.


Publication Date: 6/30/2023

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