🎓💸 Student Loan Purgatory Ending: No More Pausing, Payments Resume in August! 🗓️😱
TL;DR;
Ain’t no more stalling, folks! The bipartisan debt ceiling deal is about to pull the emergency brakes on federal student loan payment pauses. No more extensions. Payments kick back into gear around August, so the money vanishing from your bank account isn’t a glitch, it’s just your student loan waving hello. 👋💸
🎙️ News Story
Hey there, gen Zers, millennials, and anyone else who owes Uncle Sam some cash for that fancy education. Got that degree but also got a pile of debt staring back at you every time you dare to check your bank balance? Well, prepare for some ‘interesting’ news.
If turned into law, the debt ceiling deal (a fun bipartisan event that gets people from all political corners to agree on just how much money we don’t have) will shatter any dreams you might’ve had of the student loan payment freeze lasting longer than that pint of ice cream you stashed in the freezer for ’emergencies.’ 🍦😢
Despite the Biden administration playing a confusing game of “will we, won’t we” with loan payment extensions, looks like Education Secretary Miguel Cardona might not have any more aces up his sleeve. Why, you ask? The debt limit agreement has a sneaky little clause that’s like a ‘do not pass go, do not collect $200’ kind of deal for extending the payment pause. 🎩🔒
Now let’s drop some numbers because everyone loves those, right? When the payment pause takes its final bow (around 60 days after June 30), around 44 million of you fine people will need to dust off your checkbooks (or, more likely, digital banking apps) and get back in the student loan repayment saddle. 📅🏇💰
“But, how much do I owe? When do I pay? Who even is my loan servicer?” We hear your frantic questions and feel your panic. Take a breath. Yes, it might be a rocky ride. There might be some bumps, some unexpected fees, and a heck load of confusion. Remember, no one said adulting would be easy, but isn’t it fun? 💼🙃
Are your eyeballs still in your skull? Cool. There’s more. The Supreme Court is about to take center stage as it rules on a juicy student loan forgiveness program. A program that promises up to $20,000 of debt relief for low- and middle-income borrowers (provided the Supreme Court gives it a thumbs up). 🧑⚖️👍
If given the green light, the forgiveness program could be a literal get-out-of-jail-free card for many borrowers, particularly those who made less than $125,000 in 2020 or 2021. That’s $10,000 to $20,000 of your student loan waving goodbye. 👋💸🥳
Now, of course, there are lawsuits arguing that the Biden administration is flexing its muscles a bit too hard, using the pandemic as an excuse to deliver on campaign promises to cancel student debt. But hey, that’s politics for you, right? 🏛️🤷♀️
Intrigued? Worried? Puzzled? You’re not alone. But we must ask: Do you think the student loan forgiveness program is a necessary relief for borrowers, or is it an overreach of power by the Biden administration? 🤔
And for those about to re-enter the student loan repayment fray,
