Federal Student Loan payments are scheduled to begin on October 1, 2023. After more than three years of extensions, delays, an executive order, and a pending Supreme Court hearing, you may be wondering what to expect.
First, expect this case to be long from being decided and fully closed. A few things to know:
There’s no doubt in my mind this will continue to be a political and economic issue for the foreseeable future.
Recent surveys suggest upwards of a third of borrowers claim they will be unable to make their original payments. Many borrowers have publicly stated they are refusing to restart payments.
Many are also pressing for government action to reinstate bankruptcy protection on federal loans. Currently, the only two options available to retire federal student loans is to 1) pay the loan in full, or 2) die.
While all of that gets sorted out, what remains true is these student loan payments have not held a spot in your cash flow for more than three years.
I still personally have federal student loans and have begun planning to reintroduce these payments into our monthly cash flow.
For those who also have student loans outstanding, I want to share a couple of tips to help you get ready for payments to begin in October:
Finally, if you or someone you care about are reviewing monthly cash flow and concerned about the impact of student loan payments, it may be helpful to get another set of eyes on the numbers.
Reach out if I can be helpful in this area – click here to schedule time with me.
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