It was just released that the Supreme Court voted 6-3 against federal student loan forgiveness. This decision has been months in the making and will impact millions of borrowers. The decision was expected given the court’s conservative majority and their recent track record of striking down executive branch policies.
If you haven’t been following along, here’s a quick summary. Last year, the Biden administration announced they were going to forgive $400 billion worth of federal student loans. Like most political decisions, this was met by enthusiasm by some and harsh criticism by others. There were numerous lawsuits that tried to block the administration from going through with this. Two of those legal challenges made it all the way to the Supreme Court.
What do you do if you have federal student loans?? Contact your student loan servicer and get the details of when your payments will start and how much the payment will be. Many borrowers are still in denial that payments will be required in just a few months. Plan your budget so you ensure you’ll have no problems making your scheduled payments.
And remember, your wealth building journey is defined by how much of your income you can consistently invest. Getting this right will make you financially independent regardless of what the government does.
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Vivi & Shane
