Navigating the Post-Cancellation Era of Student Loans

Townsend Asset Management Corp |

Navigating the Post-Cancellation Era of Student Loans

In a shocking turn of events, the Supreme Court has halted the presidential student loan forgiveness plan.1 So, where does that leave you and your outstanding student loans? Let's navigate this new financial landscape together.

What This Decision Means for Your Student Loans

The court's decision might seem like a setback. However, even as President Biden explores alternative paths to loan forgiveness, it's crucial to prepare for loan repayments, which are set to resume on October 1st.2 And remember, interest will start to accrue again on September 1st.

So, what can you do about your student loans in the wake of this decision? Here are four specific recommendations: 

1. Refresh Your Loan Details at

The suspension of federal loan payments since early 2020 might have resulted in changes to your loan servicer or your personal information. Take the time to revisit, review your account information, and update it if necessary. This will ensure your future payments are accurately processed.

2. Explore Eligibility for Special Programs

The roadblock to the one-time loan forgiveness doesn't spell the end of all relief. There are still avenues you might explore, such as the Saving on a Valuable Education (SAVE) plan, Public Service Loan Forgiveness, Teacher Loan Forgiveness, or other federal and state-sponsored programs. is a good place for understanding which programs might be available to you.

3. Choose a Payment Plan That Suits Your Needs

There's a range of payment plans available, each with different terms. Carefully choose one that aligns with your current financial needs. You might even consider setting up automatic payments—some loan servicers offer a discount if you do. 

However, considering the current high rates, it might be beneficial to hold off on refinancing your loans. Everyone’s situation is different, which is why it’s important to speak with a professional who can help you review your goals and options.

4. Start Planning for Your Monthly Payments Now

If you've been reallocating your repayment budget elsewhere during the suspension, you're not alone. Now is the time to get used to the upcoming changes in your budget. Once you know how much you’ll be paying each month, you may want to set that amount aside now. With the payment systems potentially being overwhelmed around October 1, planning ahead is important to avoid technical issues.

Navigating the waters of student loan repayment can be tricky. If you need help choosing a repayment plan or factoring your payments into your overall financial strategy, don't hesitate to get in touch.

Remember, in the face of change, guidance and strategy are your best allies. We’re here to help you navigate this journey.





This material has been prepared by a third party that is unaffiliated with Townsend Asset Management Corp. and is provided for informational purposes only. Townsend considers this third-party source and information to be reliable, but its accuracy and completeness cannot be guaranteed.  It may not represent the views of Townsend or its affiliates. It should not be considered a recommendation to purchase or sell any particular security. Past performance should not be relied on as an indicator of future results. All investing assumes a certain degree of risk, including loss of principal. Townsend has obtained permission to distribute this material. Townsend Asset Management Corp. is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about the firm can be found in its Form ADV Part 2, which is available upon request. TAM-23-55