SCOTUS Blocks Biden’s One-Time Student Loan Cancellation Program
The U.S. Supreme Court has rejected the Biden administration’s proposal to cancel student loan debt. The court ruled today on two cases: Biden v. Nebraska and The Department of Education v. Brown. In a 6-3 decision, the court found that the Secretary does not have the authority under the HEROES Act for the loan forgiveness program.
Student loan interest on federal loans will resume on September 1st. Monthly payments will start in October. Interest will accrue whether or not payments are made.
IonTuition has implemented a return to repayment playbook and will have broad webinars throughout July.
Student Loan Repayment “On-Ramp”
The U.S. Department of Education (ED) is working on a policy to give borrowers a “penalty-free” period when student loan payment resumes. Student loan borrowers will not be penalized for late payments for up to 12 months of the repayment resumption.
A New Income-Driven Repayment Plan is Coming
Expect a series of paid media campaigns about repayment resuming. ED is finalizing a new income-driven repayment (IDR) program dubbed the “Saving on a Valuable Education” or “SAVE.” This program is expected to be similar to the current REPAYE plan. The intention is to make it easier for borrowers to find affordable repayment plans. This program is expected to be heavily promoted.
Colleges should implement default aversion plans now so borrowers have a smooth return to repayment. Contact sales@iontuition.com to request our Return to Repayment Playbook.