Supreme Court strikes down student loan forgiveness. When do NC borrowers have to pay?
The Supreme Court rejected President Biden’s student loan forgiveness plan that would’ve canceled or reduced loans for millions of Americans.
The 6-3 decision was made in a ruling Friday, with conservative justices in the majority, Associated Press reported.
The program, announced in August 2022, would’ve granted up to $20,000 in debt relief to Pell Grant recipients with loans held by the Department of Education and up to $10,000 in debt relief to non-Pell Grant recipients.
In Charlotte, the average student loan debt is $26,453, The Charlotte Observer previously reported.
Regardless of the SCOTUS decision, the clock has already started ticking for a three-year pause on federal student loan payments to end after Congress passed a law preventing further extensions of the payment pause.
Starting Sept. 1, student loan interest will resume, and payments will be due starting in October.
But there are other options to clear your college debt.
Other options for loan forgiveness for Charlotte borrowers
There are multiple types of forgiveness for federal student loans:
Public Service Loan Forgiveness: Those employed by a government or not-for-profit organization may be able to receive loan forgiveness. PSLF forgives the remaining balance on direct loans after borrowers have made 120 qualifying monthly payments under a repayment plan while working full-time.
Teacher loan forgiveness: Those who teach full-time for five consecutive academic years in a low-income elementary school, secondary school, or educational service agency may be eligible for forgiveness of up to $17,500 on direct loans or Federal Family Education Loan program loans.
What is the difference between forgiveness, cancellation, and discharge?
“The terms forgiveness, cancellation, and discharge mean nearly the same thing, but they’re used in different ways,” according to the Federal Student Aid website.
Forgiveness or cancellation: If you’re no longer required to make payments on your loans due to your job.
Discharge: If you’re no longer required to make payments on your loans due to other circumstances, such as a total and permanent disability or the closure of the school where you received your loans.
You can find a full list of other options for getting federal student loan debt canceled or discharged on the U.S. Department of Education’s financial aid website.
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