Focus at Four: Debt ceiling deal will reinstate student loan payments

BRYAN, Texas (KBTX) - The proposed deal to raise the debt ceiling would require the Biden Administration to resume collecting student loans in late August.

According to the legislation, the pause in repayments would end “60 days after June 30, 2023″ which is Aug. 29, 2023.

President Biden’s Student Loan program is facing a potential challenge in the U.S. Supreme Court, but despite the outcome, borrowers that owe more than $20,000 in federal loans are set to begin repayments this summer.

“Given the makeup of the Supreme Court, there’s a good likelihood that that that will not pass in any case,” said Jennifer Finetti, Director of Student Advocacy with ScholarshipOwl. “So that would mean anyone who owes any debt would need to start repaying as of 60 days after that decision.”

Finetti said there are some financial options immediately available for undergrad students.

She said it’s important to start looking for jobs and applying for scholarships so that individuals are ready for repayment.

Borrowers also need to visit studentaid.gov to find out more about their student loan servicer and make sure their information is up to date.

“You’ll be able to put in your information and find out who your loan servicer is so you can start contacting that servicer and getting more details about what you owe,” said Finetti.

You can find out more information about student loan debt here.

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