What to know as Supreme Court weighs student loan forgiveness
JACKSON, Tenn. — Student loan payments went on pause in March of 2020. Depending on what the Supreme Court rules, what will people need to do to be prepared to start paying again?
“About 26 million people have applied for the loan forgiveness program at this point. And so it’s really important if you haven’t to go to studentaid.gov and get that applied for,” said Yrefy managing partner Mary Jo Terry. “Also update your personal information. Phone number, email address, mailing address. Loans haven’t been back into repayment since March of 2020. It’s really important that that information is updated and ready to go to your servicer.”
With lawyers for the President addressing the Supreme Court on Tuesday, people will need to be patient when it comes to finding out about their decision.
“If you do not hear any updates, you’re going to receive notification from your loan servicer when your loans are going to go back into repayment. If this is affirmed, it moves forward. Forgiveness is going to transpire,” Terry said. “Remember this has to go back to the U.S. Department of Education to determine how to do the implementation. So be patient with that. It’s more than likely going to go through your loan servicer, and you loan servicer is going to process the applications. They’re also going to take the money off of your account is what we’ve been told.”
Some people may not know if they qualify, and if so, how much they would be able to be forgiven.
“As a result of that you should qualify. It’s all based on your income,” said Terry. “It’s also based on whether you are Pell Grant-eligible, or if you just received regular student loans. Pell Grants were the lowest earners, and so as a result of that, if they received student loans they’re gonna get twenty thousand dollars forgiven. If you had regular student loans, you’re gonna get around ten thousand dollars forgiven.”
It could take sixty to ninety days before a decision is made.
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