CHARLOTTE, N.C. — As we inch closer to a decision from the Supreme Court on the Biden Administration's request to forgive up to $20,000 in student loans, many borrowers will begin to pay back those loans this September.
Debt experts are saying that Americans with federal loans should prepare now for the impending payments.
Wrapped in the Debt Ceiling Bill that was passed last week in the 11th hour is a provision that federal student loan borrowers should start expecting to make payments this fall.
Leslie Tayne, an expert on debt, founded a law firm that actually helps people with debt consolidation. She says that date is something Americans should prepare for now before a bill is even in the mail.
"In order to determine what program what you'd qualify for through the federal government, its best to make contact with the loan servicers to find the right program for your budget," Tayne explained.
Legislators compromised between the Biden Administration's push to relieve the burden of student debt on Americans, while other lawmakers were concerned about the economy and the cost of cancelling millions in debt.
Tayne told WCNC Charlotte that "the concern is the cost, which ultimately rests on the tax payers and American people. They're thinking about the impact forgiving millions of dollars in federal student loan money and how that would impact the economy."
Since the forbearance period started, many of the programs to repay loans have changed, along with the parameters of those programs. Also, scammers will look to take advantage of this new change.
The federal government will not call or text asking for sensitive information. Rather, borrowers will receive an official letter in the months to come.
Contact Colin Mayfield at cmayfield@wcnc.com or follow him on Facebook, Twitter and Instagram.