“Student debt is crushing the dreams of millions of people across the country, and this decision is a major setback in their efforts to secure the relief they need so badly. “Today’s decision is yet another example of this court’s contempt for working families," said American Federation of State, County and Municipal Employees President Lee Saunders.
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Union leaders that publicly commented on the SCOTUS decision indicated they would work to support the White House's plan to figure out how to address student debt in other ways. Pringle and other union leaders criticized the court's ruling Friday, saying it impacts the very working families their organizations represent. and represents teachers and other educational support personnel.ĭespite the union's disappointment in the ruling, the NEA said it will continue working with the Biden administration to cancel student debt in other ways. "This Supreme Court decision fails to recognize the realities faced by student loan borrowers today," said Becky Pringle, president of the National Education Association.
Making matters worse, many older borrowers will have a new loan servicing company - not to mention they may have forgotten their online portal passwords some may not have even checked their balances in months, if not years. In fact, many have never had to make a student loan payment.Īccording to federal data, roughly 7 million federal student loan borrowers are 24 years old or younger, which means they were at most 21, and in many cases still in college, when the current payment pause began in March 2020. The problem now is that most borrowers are out of the habit. The Education Department has said it would notify borrowers before repayments begin. Their loans will begin accrue interest as of Sept. That means all federal student loan borrowers will be expected to start making payments again this fall, with the first deadline falling in October.
The deal locked in the timeline for when repayments resume: 60 days after June 30 (today). Since March 2020, tens of millions of federal student loan borrowers have had the option to take a break from paying back their student loans without earning additional interest.īut in May - after five extensions, three years and two presidents - Congress voted to include a restart provision in its deal to avoid a debt default. While today's ruling will determine how much borrowers need to pay back, it's not likely to impact when they need to pay that amount back. Getty Images North America Some students have never had to make a payment on their federal student loans thanks to a pause that's been in effect since March 2020.
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