Student Loan Update July 2023

Student Loan Update July 2023

Many of the Americans counting on student loan forgiveness as part of The Biden Administration’s forgiveness plan will need to begin repayments again. The Supreme Court announced its decision 6-3 on Friday, June 30, 2023, and ruled that the Education Department had no authority to implement a program to impact student loans in this way.

Beginning September 1, 2023, interest will resume accruing on any outstanding federal student loan balances and payments will begin again in October. Here are some tips to get ready for repayment:

  • Make sure you know who your loan service is and make sure your login information still works for their website. You may need to reset your password or create a new account if your servicer has changed.
  • Check your account to ensure that your information is up to date.
  • Review your balance and monthly payment amount, it may be necessary to call your servicer so you know exactly what the amount may be.
  • If you have the amount to pay your account in full, we recommend doing so before September.
  • If you need to continue payments, examine your monthly cash flow and discretionary spending, and if necessary, see where anything can be trimmed so that you have enough money for your student loan payment to fit into your budget.
  • Don’t think you can make your payments? Make sure to contact your servicer as soon as possible to understand the different payment plan options available to you.
MainStreet Team
MainStreet Team

MainStreet Financial Planning, Inc., an independent fee-only financial planning firm was founded in Maryland in 2002 by Jim Ludwick, CFP® who passionately believed that financial planning advice should be accessible to people from all walks of life without product sales and investment management services. In 2006 Anna Sergunina, CFP® joined the team and together they grew MainStreet Financial to a nationally recognized company, with a team of 6 staff members and 5 offices across the country.

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