As we wait for the U.S. Supreme Court decision on the Biden Administration’s one-time debt relief plan, we wanted to provide a few potential repayment restart timeline examples.
Scenario 1: The Court decides on or before June 30, 2023.
Decision Made: May 15
Repayment Restarts + 60 days: July 14
Possible First Payment Due + 30-90 days: Aug. 13-Oct. 12*
Decision Made: June 20
Repayment Restarts + 60 days: Aug. 19
Possible First Payment Due + 30-90 days: Sept. 18-Nov. 17*
Scenario 2: The Court remains undecided on June 30, 2023.
No Decision By: June 30
Repayment Restarts + 60 days: Aug. 29
Possible First Payment Due + 30-90 days: Sept. 28-Nov. 27*
*A definite date is yet to be determined. The U.S. Department of Education may roll out a plan with varying timelines to help keep volume manageable for loan servicers. Borrowers should carefully read all loan servicer communications to ensure they stay on top of the evolving situation.