Episode•July 4, 2023•14 min

Supreme Court Rules Out Federal Student Loan Cancellation: What You Need To Know | Ep. 243

Feeling overwhelmed by your student loans? Don't worry - we've got you covered! Join Tiffany Grant as she breaks down the recent Supreme Court rulings, helping you understand your loan repayment options and guiding you through the best way to tackle your student loan debt. She'll explain how to assess your current financial situation, communicate with your servicer, explore loan forgiveness programs, and pay down as much of your debt as possible before September 1st. So join us and learn how to manage your student loans - before it's too late! Every Tuesday, Tiffany answers one of your submitted questions. To submit a question for an upcoming episode, visit here: https://www.moneytalkwitht.com/asktiffany To book a consultation with Tiffany to find out if she can help you, visit https://academy.moneytalkwitht.com/15-minute-consultation Additional Resources https://studentaid.gov/manage-loans/forgiveness-cancellation/debt-relief-info Stress-Free Student Loans: Everything You Need To Know About Managing Your Debt | Ep. 238 My School Lost Accreditation, Now What? | Ep. 13 This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

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Key Takeaways

1
Supreme Court struck down Biden's $400B student loan cancellation plan
Payments resume in October 2023
Interest begins accruing September 1st
Pre-COVID repayment rules are back in effect
2
12-month on-ramp period protects borrowers from credit reporting
Late, missed, or partial payments won't be reported to credit bureaus
No default or collection referrals during this period
Still recommended to contact servicer if struggling
3
Reassess your financial situation before payments restart
Three years of paused payments means circumstances may have changed
Evaluate job, family, and budget changes since COVID began
Determine if current repayment plan still fits your situation
4
Pay down principal before September 1st to minimize interest
Interest accrues based on principal balance
Lowering principal now reduces future interest charges
Consider this strategy if no higher-interest debt exists
5
Contact your loan servicer to explore all available options
Pre-COVID forgiveness programs still exist
Forbearance and lower payment plans remain available
Reauthorize automatic payments if previously set up

Intro

Tiffany Grant breaks down the Supreme Court's decision to strike down federal student loan cancellation and provides actionable steps for borrowers facing resuming payments.
Tiffany Grant is a financial coach and host of the Money Talk with Tiff podcast, specializing in student loan debt management and personal finance strategies.

Ask Tiffany a Question Book a Consultation

– Supreme Court Decision Overview

Tiffany addresses the Supreme Court's ruling that struck down Biden's $400 billion student loan cancellation plan, ending hopes for widespread federal debt relief.

– Payment Timeline and Interest Resumption

Student loan payments resume in October, with interest beginning to accrue on September 1st after a three-year pause during COVID.

– Reassessing Your Financial Situation

Tiffany emphasizes taking inventory of changes over the past three years including job status, family changes, and overall budget before payments restart.

– Contacting Your Loan Servicer

Reach out to your servicer to confirm your repayment plan, explore forgiveness options, and discuss alternatives if your financial situation has changed.

– The 12-Month On-Ramp Period

The Biden administration announced a 12-month grace period where late or partial payments won't be reported to credit bureaus or result in default status.

– Pre-September Payment Strategy

If possible, pay down as much principal as you can before September 1st to reduce the amount of interest that will accrue once it restarts.

– Billing and Payment Setup Reminders

Borrowers will receive bill statements before payments restart. Automatic payments must be manually reauthorized and won't restart automatically.

Resources

Topics

student loansSupreme Courtdebt reliefloan repaymentfinancial planningloan forgivenessinterest accrualcredit reportingpersonal financebudgeting