As student loan borrowers await the fate of a Supreme Court case on student loan forgiveness, a pause on payments ends Oct. 1.
This will officially bring an end to an over three-year moratorium on student loan debt payments originally implemented by the Trump administration at the onset of the pandemic. Payments were set to resume earlier this year, but paused due to the uncertainty surrounding the case now in the Supreme Court.
President Joe Biden's plan calls for borrowers with incomes of up to $125,000 to receive up to $10,000 in federal student loan forgiveness. That amount increases to $20,000 for borrowers who received Pell Grants.If the Supreme Court were to allow President Biden's plan to be enacted, those who have their loans fully forgiven would not be required to pay anything.
The Department of Education is also encouraging borrowers who might struggle with payments to explore its income-driven repayment plans.
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