During the Covid-19 pandemic, the student federal loan payment was postponed. Starting September 1, the student federal loan payment will resume, and it could be a $40 Billion hit to the U.S. economy.

The student federal loan payment will resume on September 1, 2023

President Joe Biden and lawmaker Kevin McCarthy have a deal on how to help the debt ceiling. One of the solutions to recover the country’s economy is to resume the student federal loan payment, which was postponed in 2019 amidst the COVID-19 pandemic.

Starting September 1, 2023, 43 million Americans will start paying their federal loan. The federal loan payment would result in boosting the nation’s economy.

The resuming of student federal loan payments would lead to a $40 billion decrease in household disposable income.

Read Also: Student Loan Forgiveness: Despite The Supreme Court’s Decision, You May Always Be Eligible For A Debt Forgiveness Program

President Biden’s student federal loan forgiveness program

The Senate passed a bill to stop President Biden’s student federal loan forgiveness program. President Biden’s program would cancel up to $20,000 in debt for debtors.

The bill that would stop the student federal loan forgiveness program bill is on the desk of the President, and he plans to veto it. The Supreme Court is expected to rule President Biden’s plan is constitutional.

Read Also: Eligible Borrowers Must Meet Criteria To Qualify For Student Loan Forgiveness