If you have been following up the Biden Students Loan Forgiveness and you would want to get more important information about the bill, ensure you read this article carefully to the end.
While most federal student loans have been frozen since March 2020, the future of President Joe Biden’s student loan forgiveness plan continues to hang in the balance as borrowers await a Supreme Court decision, which is due to be delivered by the end of June. If the Supreme Court declares Biden’s loan forgiveness plan to be just and legal, the Education Department can resume processing the 26 million applications it has received and will re-open the application process.
If the high court decides in favor of the GOP-led lawsuits, Biden’s comprehensive student loan forgiveness program will be rendered effectively void.
For those keeping a close eye on debt forgiveness proceedings, the expected judgment is the first of six key dates to mark on your calendar.
Biden’s Student Loan Forgiveness Key Dates
Here are some important dates as regards the Biden Student Loan Forgiveness:
June 22: A Supreme Court Ruling on Student Loan Forgiveness?
Before the Supreme Court adjourns for summer recess in July, it will have to rule on around 20 cases from the current term, according to Forbes. As June 22 is the last opinion release day of this term (scheduled as a non-argument session and conference day on the Supreme Court term calendar), many are expecting an announcement this Thursday regarding the legitimacy of Biden’s loan forgiveness plan and the validity of the challenges against it.
July 1: Regulations Limiting Interest Capitalization Go Into Effect
When it comes time to repay your student loan, you’ll also have to pay the accrued interest, or interest capitalization, that has been added to your loan balance during the payment pause. For income-driven repayment (IDR) plans, accrued interest can sometimes outweigh a borrower’s monthly payment, says attorney and student loan expert Adam S. Minsky.
Education Department (ED) regulations will go into effect on July 1, expanding relief across several federal loan and discharge programs and stopping future capitalization events in the following circumstances: The first time a borrower enters repayment, upon exiting a forbearance and leaving any income-driven repayment plan besides Income-Based Repayment, per ED.
August 1: Deadline to Reach IDR Loan Forgiveness Milestone
When the Department of Education announced the creation of the IDR Account Adjustment last year, it was to repair long-standing mismanagement and record-keeping problems within the federal student loan programs. It also addressed changes that will result in at least 40,000 borrowers getting their debt canceled and more than 3.6 million borrowers receiving at least three years of additional credit toward IDR forgiveness.
Under the account adjustment, the time that accrued after July 1, 1994, will now be counted as IDR-qualifying months, even if the borrower was not enrolled in an IDR plan at the time. A date hasn’t been set for these IDR loans changes to take effect, however, per Forbes, “According to the Education Department, borrowers who reach their 20- or 25-year loan forgiveness milestone by August 1 should have their balances discharged within the subsequent two or three months.”
September 1: Student Loan Interest Will Resume
According to a statement sent to Politico from an Education Department spokesperson, “Student loan interest will resume starting on September 1, 2023, and payments will be due starting in October.” This means that interest on federal loans will revert back to the fixed rate being charged prior to the payment moratorium taking effect.
Those who consolidated their loans using a Federal Direct Consolidation Loan during the pandemic will have interest resume at the fixed interest rate based on the average of the interest rates on the loans that were consolidated.
October: Monthly Student Loan Payments Will Restart
The recently signed debt ceiling bill will lift the payment pause at the end of August, eliminating the possibility of extending the student loan moratorium for the eighth time since March 2020. So, barring another national state of emergency, student loan borrowers will need to find the hundreds of dollars required to pay their monthly loan installment starting in October.
Details surrounding resuming monthly student loan payments are vague but will be communicated to borrowers before they restart, per the Education Department spokesperson.
December 31: Deadline to Consolidate Loans for IDR Account Adjustment
As Minsky notes, borrowers who already have federal student loans will automatically be covered by IDR Account Adjustment regulations, but those with Federal Family Education Loans (FFELs), FFEL borrowers who want to pursue Public Service Loan Forgiveness (PSLF) and debtors with diverse loan periods have until Dec. 31, 2023 to consolidate their loans and benefit from the IDR Account Adjustment.
- Microsoft Cloud & Data Scholarship
- CUHK Design Talent International Scholarship
- Federal Government Scholarship for BEA
- Canadian Commonwealth Scholarship | Fully-Funded
- Italian Government Scholarship for Foreign Students
- Commonwealth Shared Scholarship for International Students
- University Of Calabria International Scholarship – A.Y.
- Chevening Scholarship UK | Fully Funded
- USTC Scholarship China | Fully Funded
- Queen Elizabeth Common Wealth Scholarship for International Students
- NUTM Scholars Program
- University Of Alberta International Scholarship Award
- York University Tentanda Via Awards For International Students In Canada
Expenses to Remove From Budget Once Payment of Student Loan Commences
Gym memberships in the U.S. cost between $20 and $60 a month, on average. By the time you have collected student loan, you may need to cancel your membership.
Depending on where you live and the type of hair you have, haircuts can be expensive.
“They can cost anywhere from $20 to $60,” Ross said. “Beauty school haircuts are usually cheaper, or you may consider cutting your own hair.”
In some locations, haircuts will run even higher than $60, so you might want to either shop around or go a little longer between trims.
Cutting back on buying unnecessary clothes can also save you much-needed money. If you’re a shopaholic though, this may be really tough. In that case, aiming to buy secondhand instead of brand-new items could make a substantial difference.
Make Your Money Work for You
“You can consider cheaper ways of getting new looks, like going to thrift stores or shopping for your favorite brands on sites like Poshmark or Ebay,” Ross said. “Just remember to stick to your new budget.”
The retail revenue from consumer electronics sales in the United States is expected to reach close to $485 billion by the end of 2023, according to Statista. Is all this spending on shiny new things really essential to your quality of life?
Spa Treatments and Beauty Services
Spa treatments and beauty services are heavily marketed as self-care. And while they can help you to feel better, they’re not essential for self-care, which you can do through meditation, breathwork and other free holistic practices.
Cable or Satellite TV
Cable TV isn’t as popular as it used to be thanks to the prevalence of streaming services, but it’s far from phased out. Same with satellite TV. A 2021 survey found that 56% of Americans say they watch cable or satellite TV. These may be unnecessary expenses.
People spent 20.7% more at restaurants than they spent on groceries in 2022, according to Commerce Department data put together by JLL. While it’s true that groceries are ridiculously pricey right now, it will still generally be much cheaper to prepare your own food.
Ours is a nation absolutely obsessed with subscription services. And these services really add up.
There’s no way to make cutting out travel sound good, but alas, it’s more expensive than ever and should perhaps be put on hold as student payments resume. If you can’t handle the idea of not traveling at all, opt for methods of travel that are cheaper than flying.
This is a big one — definitely the biggest on the list. If able, try to look for a cheaper place to live.
“A one-bedroom apartment, for example, could be considered a luxury compared to a studio apartment,” Ross said. “The average one-bedroom’s rent in the U.S. is $1,769, and the average studio apartment’s rent is $1,635.00. Costs vary greatly state to state, but you’ll typically save more money renting a studio apartment.”
I hope you have found this article helpful. In case of any other inquiries about Biden Student Loan Forgiveness, kindly make use of the comment section below this article.