“The stakes could not have been higher.”
The deal will also end a pause on federal student loan repayments that started during the COVID-19 pandemic.
The bipartisan deal calls for student loan borrowers to start repaying loans as soon as Aug. 30.
The text in the deal prevents the Education Secretary from initiating another pause.
The average amount owed is $37,338 and the average monthly payment is $337.
What will happen to student loan borrowers with the debt ceiling deal approved?
Biden signed the bill into law on Saturday.
It had passed in the Senate on Thursday and in the House the day before.
Will there be any student loan forgiveness?
Not under the debt ceiling deal.
Last August, Biden announced a plan toforgive up to $20,000 of student debtto those who qualified.
The move receivedtwo legal challengesarguing that the cancellation oversteps the authority of the Education Secretary.
The Supreme Court has until the end of June to make a decision on the matter.
How to prepare for student loan repayments.
Open an account and deposit money that was intended for the student loans.
The money will build thanks to the higher interest rates, with some as high as 4.85% APR.
Both options can help put you in a better position financially before loan payments restart.
Still worried about student loan repayments?
If you have concerns about repayment, it’s imperative to talk with the loan servicer.
