Millions of Americans are about to resume paying their student loans after the pandemic-era program will end on September 1.
Student Loan Payments
Millions of students and families across the country have difficulty paying their student loans during the pandemic. Biden administration decided to freeze the student loan and also wanted to forgive up to $20,000 but it is still in a legal battle.
In a published article in KQED, student loan borrowers are about to resume paying their loans this October. Student loans will start to accrue this September 1 and millions of borrowers are asking the Biden administration to cancel student loans. However, this issue is now up to the Supreme Court to decide.
Furthermore, millions are waiting for the decision of the Supreme Court on whether they will allow the Biden administration’s plan to forgive student loans or not.
What Happens If Borrowers Will Not Pay Student Loans?
According to a published article in ABC News, those who choose and can’t pay their student loans will affect their credit score. Additionally, this will also make them ineligible for additional aid and other government benefits in the future.
Meanwhile, financial experts advised the borrowers to check whether they qualify for income-driven repayment plans by visiting the Federal Student Aid website. Borrowers who worked for a government agency or a nonprofit organization could also be eligible for Public Service Loan forgiveness.