Federal student loan payments have been pushed back following legal proceedings on the Biden/Harris debt cancellation relief plan. However, the date they will resume has yet to be fully known. Payments will begin once the U.S. Department of Education is permitted to implement the debt relief program once all litigation is resolved.
- If this occurs before June 30, 2023, payments will resume 60 days after that.
- If it is not implemented or resolved by June 30, 2023, then payments will begin after August 29, 2023
What Employees Need to Know
1. They can get free qualifying payments towards forgiveness during the administrative forbearance period. However, they must have the proper loan type to do so.
2. Taxes, Taxes, Taxes! – The way they file taxes in the next few months will have significant impacts when payments, in fact, resume. Improper tax filing now may delay forgiveness by over a year!
3.Those not pursuing loan forgiveness. Their are different opportunities that exist based on several changes in the student loan landscape. Thousands in savings exist if employees know where or how to find the opportunities.
Uncertainty consumes the federal student loan landscape right now. Still, you can take control of your situation and take advantage of these times! Feeling overwhelmed with these uncertainties? You are not alone!