Supreme Court blocked cancellation of student loan debts. Here's what to know

After a payment pause that has lasted more than three years, more than 40 million student loan borrowers will be on the hook for payments starting in late August. Uncle Sam won't cancel the debt of millions of student-loan borrowers after all, with the Supreme Court ruling Friday that the Biden Administration exceeded its authority in pledging to wipe out up to $20,000 in loans per borrower for millions of people.

The Biden Administration sought to forgive or cancel up to $10,000 in debt for borrowers generally, or up to $20,000 for those with low-income Pell Grants. Borrowers with income below $125,000 or $250,000 would have benefitted. Biden’s loan-cancellation proposal was on holding pending two cases in front of the Supreme Court that challenged the plan. Those cases were heard in February, with the high court finally deciding on the issue Friday.

Millions of borrowers benefitted from the delay or pause in student-loan payments, but they will resume again at a time when plenty of people already are facing a financial pinch. In fact, people ages 51 to 65 enrolled in Achieve’s debt-resolution program have balances of more than $53,000 each on average. Many parents and grandparents co-sign loans for children or grandkids, and they could face credit-score damage if payments are missed. Co-signers aren’t responsible for making payments unless the primary borrower fails to do so but, either way, could see harm from late or missed payments as well as defaults.

It’s also smart to verify your federal loans at StudentAid.gov. Hoffman suggests that borrowers also review key loan issues atYes. Low-income borrowers could benefit from having their monthly payments recalculated. There are various income-driven payment plans available, and the Biden Administration has sought to revise these, too.

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Here's what's left for the Supreme Court's final week of the termAll eyes are on the Supreme Court for its final days of the term, as the justices will release cases on issues such as affirmative action, student loan payments and LGBTQ rights.
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Here's what's left for the Supreme Court's final week of the termAll eyes are on the Supreme Court for its final days of the term, as the justices will release cases on issues such as affirmative action, student loan payments and LGBTQ rights.
Source: ABC7Chicago - 🏆 284. / 63 Read more »