Adding value for our clients in default management + CDR monitoring and reduction measures in a post-COVID, post-pause environment

Aug 1, 2023 | News

In a 6-3 ruling, the U.S. Supreme Court struck down President Biden’s loan forgiveness plan. This decision starts the clock on student loan repayments to begin. Student loans will start to accrue interest 60 days from now and student loan payments will be due around October 1st. Billing statements will be sent to students from the loan guarantor at least 21 days before payments are due.

This news doesn’t come as a surprise and really didn’t change the timeframe for loan payments to resume. The passage of the debt limit bill on June 1st included an end to the student loan payment pause. The Department of Education and Biden administration may explore other avenues to achieve their debt relief initiative, but this will not affect the start of student loan payments. The Public Service Loan Forgiveness (PSLF) program and Income-Driven Student Loan Repayment Plan (IDR) options remain unchanged as of now.

The managerial staff you have worked with in the past are resuming their positions and will be fully operational at the end of July. We will be in touch to update all login credentials and loan guarantor agency agreements. There will undoubtably be challenges and hiccups for the Department of Education, loan guarantors and students once the loan payments restart, but we will be here to work with your teams to ensure a smooth transition.

If you have any questions, please reach out via email or phone.