The U.S. Department of Education has officially announced that student loan payments will resume in October, ending the three-year-long pause that was implemented due to the pandemic.
This means that starting September 1, interest will begin accruing on student loan debt.
Additionally, the Supreme Court blocked the Biden administration's student loan forgiveness plan last week, rejecting a program aimed at delivering up to $20,000 of relief to millions of borrowers struggling with outstanding debt. While Biden quickly released a statement in response to the ruling saying he is "not done fighting yet" and that they were "prepared for this scenario"5, it is always best to assume that relief is not guaranteed.
Around 40 million Americans have educational debt, including many of our clients. If you currently have outstanding student loans, now is the time to get reacquainted with your account details to be sure you are prepared to resume payments, as exact due dates may vary.
If you're a GTS Financial client with student loan debt, remember we are here for you. We would be happy to help you construct your repayment strategy to fit your financial life today.