Ohioans owe $63.5 billion in student loans
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Last week's U.S. Supreme Court ruling that President Biden's student debt relief plan is unconstitutional has axed loan forgiveness for hundreds of thousands of Ohioans.
Why it matters: Federal student loan payments are due in October for the first time since the pandemic began, and millions of Americans will likely struggle to make them, Axios' Caitlin Owens reports.
Catch up quick: Biden's program would've canceled up to $10,000 for individual borrowers making under $125,000 per year, and up to $20,000 for Pell Grant recipients.
By the numbers: Ohio has the nation's sixth-highest number of borrowers (over 1.8 million, or about 15% of our state's population) and eighth-highest overall debt balance ($63.5 billion), per March Federal Student Aid data.
- That's an average balance of about $36,000 per borrower.
- Over 700,000 Ohioans were approved for forgiveness in the short time an application was available last year, the White House announced in January.
What you're saying: "While I was fortunate to be able to pay off my student loans, the decision does have an indirect impact on our economy. Simply put, it's money that won't be used for a down payment on a home or to purchase from local businesses," reader Valerie A. tells us.
Be smart: For most borrowers, auto-debit payments won't restart automatically in October. That means you'll need to opt in again to ensure your first payment is on time.
- Further complicating matters, many loans' servicers have changed since 2020 — so you may need to log into a new website to set up payments.
- Visit studentaid.gov to confirm your servicer and update your contact information.
Of note: Interest starts accruing again Sept. 1 and rates will be the same as pre-pandemic.
- For one year, borrowers who miss payments won't be reported to credit bureaus, placed in default, or referred to collection agencies.
What we're watching: The White House finalized a new student-loan proposal within hours of last Friday's Supreme Court decision, and Biden pledged there will still be more to come.