Supreme Court Student Loan Hearing: When Will Payments Resume?

Nearly half of these people could write off their federal student debt entirely.

But the final decision on whether Biden can pay off that student loan debt will now rest with the Supreme Court. Regardless of what the court decides, its decision can affect when borrowers must resume payments.

During the pandemic, two presidential administrations have suspended payments to those with federal student loans. The break has been extended until this summer.

Payments must resume along with interest accrual 60 days after court cases are resolved. For example, if legal issues remain at the end of June, payments will resume at the end of August. If the Supreme Court rules in March, the payment could resume as early as May or June.

If cases are not resolved by June 30, payments are currently due to begin 60 days after that, i.e. at the end of August.

There will be no decision for several months. Usually the court delivers all its decisions by the end of June, and sometimes by the beginning of July.

The plan, announced by Biden last August, would write off $10,000 of federal student loan debt for those earning less than $125,000 or households with incomes less than $250,000. Pell grant recipients, who typically come from low-income households, will receive an additional $10,000 in debt forgiveness totaling $20,000.

Federal student loans for both undergraduate and graduate students, including Graduate PLUS loans, may qualify for forgiveness under the plan.

Borrowers are eligible if their federal student loans were paid off by July 1st.