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Student loans: How borrowers should prepare after the Supreme Court ruling

July 8, 2023 / 9:42 AM EDT / CBS News

How borrowers can prepare after Supreme Court student loan ruling

Last week the Supreme Court ruled against the Biden administration's plan to cancel billions in federal student loans. That means 45 million student loan borrowers must start repaying those loans on October 1.

GETTING READY

To prepare for that day, make sure that you're in touch with your loan servicer to confirm your personal information, loan amounts, interest rates, and payment plans. Also enroll in auto-debit, which will keep you on track.

IF YOUR SITUATION HAS CHANGED

If your financial situation has changed, go to StudentAid,gov and use the Loan Simulator to determine if a different repayment plan better meets your needs or if consolidation might help. There are income-based plans as well as public service loan forgiveness programs that can help.

ON-RAMP

President Biden also announced the "Temporary On-Ramp" program. For one year, starting October 1st, people who miss student loan payments won't go into default, won't be referred to a debt collection agency, and won't take a hit to their credit score.

Student Loans

Jill Schlesinger

Jill Schlesinger, CFP® is the Emmy-nominated business analyst for CBS News. She covers the economy, markets, investing and anything else with a dollar sign on TV, radio (including her nationally syndicated radio show), the web and her blog, "Jill on Money." Prior to her second career at CBS, Jill spent 14 years as the co-owner and chief investment officer for an independent investment advisory firm. She began her career as a self-employed options trader on the Commodities Exchange of New York, following her graduation from Brown University.

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