Once Your Student Loans Are Forgiven, What Will You Do With That Money? Most People Say They’ll Do This First

The New York Fed’s Fourth Quarter 2022 Household Debt and Credit Report.

Student Loans ( Photo: Real Simple )

When the Supreme Court upholds the Loan Forgiveness Program contrary to conventional wisdom and rules

The two student debt forgiveness cases are among 30 cases that SCOTUS will decide on this quarter. This period usually ends in the last week of June, so a loan forgiveness decision will be made in the coming weeks. The Public Service Loan Forgiveness (PSLF) program supports “public employees — such as teachers, firefighters and members of law enforcement, as well as those who work for a non-profit organization in a variety of fields — by forgiving the remaining federal student loan balance for those who work in public service and make the required 120 qualifying monthly payments,” according to the Department of Education.

A new Federal Reserve report titled Financial Well-Being for American Households in 2022

Borrowers hoping for student loan forgiveness may still have options even if Biden’s plan fails. These mainly come in the form of deferrals and omissions. As for the Biden plan, announced in August 2022 and which is still awaiting a Supreme Court decision — up to $10,000 in federal student debt relief may be offered to borrowers whose income in 2020 or 2021 was less than $125,000.

Federal family education loan (FFEL) program loans held by ED, Perkins loans held by ED, and defaulted loans, according to studentaid.gov.

READ ALSO: Worth $17.6B Texas Property Tax Payment Plan Was Passed In The Senate To Help All Taxpayers In Texas