INDIANAPOLIS — Federal student loan payments have been paused for more than three years now.
But a lot has happened since March 2020.
Not only did the payment pauses get extensions, but President Joe Biden also tried to enact one-time federal student forgiveness.
The amount is up to $20,000 if you are a Pell Grant recipient, up for $10,000 for others.
Michael Kitchen, with LendingTree, said since Biden announced the one-time forgiveness, lawsuits have tried to stop it from happening.
Now, two lawsuits are at the U.S. Supreme Court level, and the Court is expected to rule on them at the same time.
"This will be the big decision. It's expected late June, although the exact date is not yet known," Kitchen said.
The second date to watch is about the payment pause ending.
The Biden administration said federal student loan payments will resume 60 days after that Supreme Court ruling, or 60 days after June 30 — whichever comes first.
However, with how the timeline is playing out, it's safe to say payments will resume in late August or early September.
This deadline recently made news because of the debt ceiling deal. The deal says, in plain terms, that the deadline cannot be extended again.
"The Republican side can claim a victory, they can say, 'Well, repayment is going to restart in September, no matter what,'" Kitchen said. "The Democratic Party side can say, 'Well, you know, we protected this pause. It's not ending early.'"
If it is going to be tough for you to make payments, now is the time make moves.
"Get in touch with your servicer as soon as you can and look into maybe like an income-driven repayment plan," Kitchen advised.
To add even more confusion, the Senate passed a bill Thursday to block student loan forgiveness. Kitchen said the mostly party-line vote will not affect the outcome since Biden has indicated he would veto any legislation blocking his forgiveness plan.
"Really, the Supreme Court will have the final word on this," Kitchen said.