TAMPA, Fla. — While the Supreme Court hears arguments regarding President Biden’s student loan debt relief plan, experts are sharing advice on repayment.
It’s a back-and-forth that’s left some borrowers holding their breath.
"So happy to have like at least a little bit less than half of it taken away, but then it got paused, so I'm like what's going to happen now,” said Sandra Rodarte.
Rodarte said she has between $50-60,000 in federal student loans. She had Pell Grants, so under the President’s student loan relief plan, she would qualify for up to $20,000 in relief.
"It was just important to get an education,” said Rodarte.
Back in August, President Biden shared the plan to give up to $20,000 in debt relief.
According to the White House, in the less than four weeks the application was available, 26 million people either applied for debt relief or had already provided enough information to be deemed eligible for relief.
Officials said over 16 million of those borrowers’ applications were fully approved and sent to loan servicers.
“Since we haven't had payments on student loans for what three years now, it's true they've probably spent that money, and so it's going to be very hard to put that back in the budget,” said Christie Arkovich, the founding attorney at Arkovich Law.
Arkovich specializes in bankruptcy and student loan relief. When it comes to repayment and what to keep in mind, she said to focus on things behind the scenes.
“There's this program called IDR waiver. It's a one-time audit adjustment. It's for anyone that has a direct loan, and if you've been in repayment for 20 or 25 years, no matter what kind of payment you've made, you're going to get full forgiveness immediately, so the key is if you have these older FFEL loans, consolidate them. You do so by May 1,” said Arkovich. “Keep in mind if you have an older federal loan, please consider consolidation before May 1 to get the benefits of this huge program that I think is really much more helpful than the $10,000.”
Arkovich said it’s important people take action now before the pause expires.
Federal officials said the pause will end 60 days after the Supreme Court makes a decision on the case and that if no decision has been made by June 30, payments will resume 60 days after that.
Until then, some borrowers will wait for this relief to find some resolution.
"That would be sad if the $20,000 doesn't go, but there's not much we would be able to do since that's out of our hands,” said Rodarte.
