As SCOTUS decision looms, expert says to be ready for student loan payments resuming

LINCOLN, Neb. (KLKN)- The U.S. Supreme Court is expected to announce the fate of student loan debt on Friday, a decision that’s been pending for nearly three years.

President Joe Biden’s plan to erase up to $20,000 in loans could come to pass this Friday, but regardless repayment will resume by October.

Tim Kulhanek, co-founder of Stonebridge Wealth Management, says the first thing you should do is look at your budget to prepare.

“I think now’s the time to start looking at that because, you know, we’re this is right around the corner,” he said.

Student loan interest will start accruing on Sept. 1 and for many borrowers, this means dishing out funds you may not have the income to keep up with.

“Unfortunately what we found, was less than 1% of borrowers have continued making their payments,” Kulhanek said.

He says the harsh reality of the repayment clock ticking down is many were never prepared to pay back loans, but everyone should be realistic about their pending debts.

“People should be realistic with where they’re at and be realistic with what they can afford and have more of an attitude of…I’m going to live a bit leaner now, so that way I can afford to get from underneath this debt,” he said.

Loan repayments resume regardless of the SCOTUS decision.