The key dates for Student loan forgiveness in 2023
For those burdened with years of paying off student loans, there are some important dates to remember if you wish to avail of benefits to lighten the load.
Many Americans are saddled with student loans that they have been paying off for years. Over 40 million borrowers are paying off their debt, with the average balance standing at more than $37,000, according to Education Data.
The government of President Joe Biden has begun rolling out programs to ease this burden, and for those who wish to take advantage of these benefits, there are some dates to watch out for so as to avoid missing crucial deadlines for actions that need to be taken.
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Student loan forgiveness is to be shaped by the decision of the Supreme Court, which has been reviewing the measure since November 22. They are set to rule on the loan forgiveness plan on June 30. If the Court gives the go-ahead to the program or are unable to make a decision by this date, those who have outstanding loans may receive loan forgiveness shortly after the ruling. If the justices vote against it, the Biden government will have to reevaluate the initiative.
The extension of the student loan moratorium is scheduled to lapse 60 days after June 30 or the actual day that the Supreme Court makes a decision on the student debt program, whichever comes first. Federal student loan repayments would resume around August 30, unless the Biden government decides to prolong the moratorium.
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The Biden government announced the Income-Driven Repayment Adjustment, which aims to provide millions of borrowers with retroactive credit toward student debt forgiveness under IDR plans. The Education Department will give an adjustment that will apply to previous repayment periods. This initiative’s effectivity date is currently set at December 31.