VIRGINIA – The Supreme Court announced a much-awaited decision on Friday — rejecting President Joe Biden’s plan for student debt relief.
Student loan advocate and member of the State Council of Higher Education for Virginia, Scott Kemp says the decision came in the final hours.
“The payment restart was going to be either when the Supreme Court decided, or June 30. Well, darned if they didn’t decide June 30,” Kemp said.
Kemp says nearly 525,000 Virginians would have benefited in part from Biden’s $400 billion forgiveness plan.
“When you look at loan balances, we’re not talking about the vast majority of people that have mass amounts of debt. We’re talking about a third of Virginians that have $10,000 or less,” Kemp said.
But he says now is the time to focus on next steps.
“Payments are going to restart. Regardless of what amount, whether it’s discharged down the road, or whatnot, they will discharge,” he said.
After nearly three years of payment pause, Kemp says to look at options like income-based repayment plans to help ease the cost burden.
“Pursue that option first instead of fighting the restart, because of the implications going into default and collection has on their overall credit history,” he said.
Kemp says overall, changes need to be made when it comes to the cost of higher education.
“If higher education was more affordable, people would have to borrow less,” he said.
But recognizes the importance of loans in giving people opportunities.
“Student loans are a tool that can be used effectively or used ineffectively and they create opportunities for so many students in which that door is not open,” Kemp said.
