Student loans in the United States, will young people continue to pay the debt?

What about student loans? During the coronavirus pandemic, many college students USA they benefited from some measures to obtain loans and in this 2023 the young people had new news about this case. And it is that according to various media reports, the government was planning to cancel up to 20 thousand dollars of the debt to federal borrowers. Therefore, many wonder if this will resume from the month of June.

Currently, the payment of student loans is in a process that will be determined by the Supreme Court and it will decide if the millions of young people will have to continue paying their debt from mid-2023.

Joe Biden announced, in August 2022, that there was an intention to submit a proposal to forgive part of the student loan; However, this could not be specified because the arguments had to be heard in court, according to CNN in Spanish.

For this reason, the judges of the Supreme Court they had to hear the respective arguments to make a decision. Next, we tell you if these loans must be paid in the coming months.

WHAT IS A STUDENT LOAN?

This is one of the big questions that many young people ask themselves. Given this, consumer.ftc He argued that student loans fall into two categories: federal and private.

federal loans

It is the aid that is delivered directly by the United States Department of Education. There are also plus loans aimed at graduate students or professionals.

private loans

These loans are delivered by private entities such as banks or credit unions.

DIFFERENCES BETWEEN FEDERAL AND PRIVATE STUDENT LOANS

According to the Usa.gov portal, to apply for a federal loan the student must be enrolled in a college or technical school that is included in the school loan program.

In case you want a private loan You should keep in mind that this money earns higher interest and fees than the federal ones. Another detail is that they offer little flexibility for payment.

WHAT DID THE US GOVERNMENT PROPOSE?

Joe Biden has as a proposal, according to La Opinion, to cancel even up to 20,000 dollars in debt from federal student loans for those who earn less than $125,000 a year or less than $250,000 for those who are married.

WILL STUDENTS HAVE TO PAY THEIR LOANS FROM JUNE?

Once the Supreme Court of Justice resolves the case, the students must know if they will continue to pay their debt.

It was reported that if justice ruling against students will have within 60 days counted from the June 30th to start paying off your debts. They must verify if your data is updated in the computer system. To do this, you have to enter the StudentAid.gov web portal.

WHAT WOULD BE THE PAYMENT PROCESS?

Taking into account the deadlines indicated students will receive an account statement regarding what they must pay. There you must determine the amount, payment date, interest and other details.

WHAT DID THE SECRETARY OF EDUCATION SAY?

The Secretary of Education michael cardona He maintained that the government team that gave its arguments in the process made a good defense of the proposal for the benefit of 40 million middle-class and working-class Americans.

“Our Administration trusts our legal authority to adopt this plan and today I make it clear that opponents of the program lack standing to even take their case to court”Cardona told the lenders in an email to CNN.