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How to Best Deal with Student Loans in 2023 with Current Legal Uncertainty

August 15, 2023 John J. Scura III


The student loan debt crisis is a major financial burden for many Americans and the recent Supreme Court decision has created chaos for student loan borrowers in need of relief. In 2023, the average student loan borrower owes over $30,000. The Supreme Court in Biden v. Nebraska, recently ruled that borrowers can be sued for defaulted student loans and struck down President Biden’s plan to forgive over 400 billion in student loan debt. This has left the area of student loans in disarray because borrowers are left with difficult decisions as to what decisions that they should make.

What to do Know if you Have Student Loans and Not Sure Whether to Pay?

So, what should you do now if you have student loans? Here are some tips to be proactive and deal with your student loans:

  1. Understand options.  Many different repayment plans are available for student loans. You can find out more about your options by visiting the Federal Student Aid website. Some of the most popular repayment plans include:
    • Standard repayment: This plan requires you to make fixed monthly payments over a period of 10 years.
    • Graduated repayment: This plan starts with lower monthly payments that gradually increase over time.
    • Income-driven repayment: These plans base your monthly payments on your income and family size.
    • Hardship discharge in Bankruptcy. This is difficult to accomplish but you may qualify depending on your particular situation.
  2. Work on a budget. Once exploring your options, you need to work on a budget that will help you afford your monthly payments. You can use a budget tool like Mint or EveryDollar to help you track your income and expenses.
  3. Make extra payments on your student loans. If you can afford to, make extra payments on your student loans to pay them off faster. This will save you money in interest over the life of your loan.
  4. Consider refinancing your student loans through another loan. If you have private student loans, you may be able to refinance them at a lower interest rate. This could save you money in the long run.
  5. Apply for loan forgiveness. There are a number of programs that can forgive student loan debt depending on your situation. A great place to explore your options about these programs is on the Federal Student Aid website.

Additional Tips for Dealing with Student Loans Due to Supreme Court Ruling

The problem with the Supreme Court ruling and President Biden's plan to forgive student loan debt are both positive developments for borrowers. However, it is important to remember that these changes may not be permanent. It is still a good idea to make a plan to repay your student loans, even if you think you may be eligible for forgiveness in the future.

Here are some additional tips for dealing with student loans in 2023:

  • Don't panic about your situation. The student loan debt crisis is a serious problem, but it is not insurmountable. There are many resources available to help you manage your student loan debt. Do not stick your head in the sand. Do something to strategize.
  • Be patient in working out the student loans. It may take some time to pay off your student loans. Don't become discouraged if you don't see results immediately.
  • Get help from the government or other groups. If you are struggling to manage your student loans, there are many organizations that can help. You can find a list of resources on the Federal Student Aid website.
  • File a Chapter 13 bankruptcy to restructure the payment of the student loans over a 60 month plan with the hopes that another law is passed forgiving student loans. In other words during your plan of reorganization hopefully the law changes so that it will enable you to wipe out the balance of the student loans.

Dealing with student loans can be a challenge, but it is important to remember that you are not alone. There are many resources available to help you manage your debt and reach your financial goals.

In addition to the tips above, here are some other things you can do to help manage your student loan debt:

  • Stay organized with finances Keep track of your loan information, including your balance, interest rate, and repayment plan.
  • Negotiate with your lender on the student loan debt. If you are struggling to make your payments, you may be able to negotiate a lower interest rate or a longer repayment period with your lender.
  • Consider consolidating your loans into one new loan via refinance. Consolidating your loans can make it easier to manage your payments and save money on interest.
  • Get help from a Lawyer. If you are struggling to manage your student loan debt, a lawyer can help you create a plan to pay it off or negotiate with the lenders.

Dealing with student loan debt can be a challenge. Please reach out to one of our attorneys in any of our New Jersey locations. A lawyer can review your options and whether bankruptcy may be a helpful avenue to resolve the problems.




John J. Scura III

John fights hard for his clients and tries to educate them so they understand what is going on with their particular legal problem. John has been Certified by The Supreme Court of New Jersey as a Civil Trial Attorney. Whether it is a personal injury case, bankruptcy case, litigation case or other type of matter, John wants his clients to participate in the decision making process toward solving their problem in the best way possible.

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