Student Debt Relief Plan Worst-Case Scenario If Supreme Court Blocks Program

The Supreme Court is currently considering the legality of U.S. President Biden’s Student Debt Relief Plan. Unfortunately, if the high court blocks the program, over 40 million student borrowers may have to begin repaying monthly debts.

On June 29, the U.S. Supreme Court is expected to release more statements regarding the Student Debt Relief Plan. If U.S. President Joe Biden‘s program will be completely shut down, over 40 million student borrowers may have to begin repaying monthly debts as soon as September.

Unfortunately, according to Hyatt, student borrowers have not made any payment or some may have had their Student Debt Relief Plan servicers changed in the past three years. This means that these borrowers may need to do some searching to assess where to start making payments again.

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Student Debt Relief Plan Tips

According to Backman, if the Student Debt Relief Plan will be shut down, student borrowers must avoid financial shock by saving extra money. In addition, cutting back on the expenses on some non-essentials can also make room for budget.

Student borrowers can also begin a second job, a side hustle, or a gig to secure a stable income that can cover the loan payments. Lastly, borrowers can also explore other options and switch repayment plans. For instance, an income-based repayment plan is where the monthly payments depend on the borrower’s earnings.

READ ALSO: $400 Billion Student Debt Relief Plan Defended By White House Ahead Of Supreme Court Ruling