Student Debt Relief Plan: What to Know
On June 30, 2023, the U.S. Supreme Court blocked President Biden’s Student Debt Relief Plan to cancel $430 billion in student loan debt. At CommunityAmerica, we care about your financial well-being, so we wanted to share more information about the Supreme Court decision with our members.
Student Loan Forgiveness June 2023 Update:
- Under the court’s ruling, the U.S. Department of Education has been prohibited from implementing the Biden-Harris Administration’s one-time debt relief program.
- The Department of Education is considering alternative ways to provide debt relief to borrowers. The Department of Education is working hard to complete and implement the new rules as quickly as possible. However, this is expected to take time.
- If you applied and were approved to receive student loan debt relief, you will not receive a discharge from the loans under this program. You will need to begin making payments on your student loans.
- Student loan interest will start accruing on September 1, 2023 and first payments are due in October. Interest rates will be the same as it was when it went into deferment.
Prepare for Student Loan Payments to Restart
Update your contact information with your loan provider(s) so you will be notified once payments restart. You could incur penalties if you miss any loan payments.
We will continue to keep you updated as we learn more information throughout the rest of the year. In the meantime, we’d like to share these resources to help answer questions you might have.
- Click here for live updates on the Student Debt Relief plan directly from the U.S. Department of Education.
- Our student loan servicer, Student Choice, wrote this article sharing more information on the Student Debt Relief Plan and linking to other resources.
- If you are needing help on budgeting with the return of student loan payments, our free Financial Well-Being Coaches are here to help you navigate your specific situation to determine a plan. Book a free appointment here.
- If you have student loan-related questions in general – please contact our free College Planner, Karly Scholl, at [email protected] or schedule an appointment to meet with her.