- The Biden administration’s student debt cancellation plan is stuck in litigation.
- That means Americans shouldn’t expect relief any time soon.
- They should be ready to start repayments again on Jan. 1. Here’s how.
Now that it’s unlikely millions of Americans will get student loan forgiveness by year-end, they should prepare (and quickly) to start repaying again, experts say.
A federal appeals court unanimously voted Monday to issue a nationwide injunction barring the Biden administration’s student loan debt relief program until the question is resolved in court. The Biden administration could ask the Supreme Court to lift the injunction. Either way, a resolution could take months and certainly won’t come by the end of the year, when the student loan repayment pause expires.
That means everyone with student debt probably will have to start repayments on Jan. 1 unless the administration can devise a new plan that can avoid court battles, experts say.
Even if the administration does come up with a new plan, it probably will be narrower than the one stuck in the courts, which is why “I’m telling people to expect to start paying again,” said Brian Marks, executive director of the Entrepreneurship and Innovation Program at the University of New Haven in Connecticut.
Some debt relief:With student loan forgiveness stuck in courts, here’s how feds are still erasing debt
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