SAN FRANCISCO (KCBS RADIO) – The Biden administration's loan forgiveness plan is on thin ice as legal challenges continue as a moratorium on repayments is set to expire at the end of the year.
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Loan payments have been paused, accruing zero interest, during the pandemic but this final pause will end in January.
"Maybe, if you have any outstanding balances above the loan forgiveness threshold – you try to pay those down if you can afford to do so," said Jill Schlesinger, CBS News Senior Business Analyst with KCBS Radio's Melissa Culross on Monday morning.
Those who aren't sure should go on the website and set up an auto-debit repayment so that when the payments do start again, there is already a bank account linked to the account.
"If your situation has changed, the Department of Education still has their loan simulator tool up and running, maybe a different repayment plan could better suit your needs," she said.
But amidst everything, the best thing people can do is exercise as much patience as they can while things remain uncertain in the courts.
"This could go up to the Supreme Court," said Schlesinger
For people who are making less than $125,000 a year as an individual household or less than $250,000 as a joint household – the forgiveness plan would have a one-time cancellation of up to $10,000.
"The question is do you start paying down below that threshold or just use the above that threshold," she said. "Maybe hoping that the plan goes into effect."
If people can, it might help to pay just a bit more than the minimum required each month.
If they can't, then all people can do is wait and see until January, and maybe don't go too crazy with spending this holiday season.
"It's an administrative nightmare," said Schlesinger. "You're going to have to have patience and keep great records – that's the most important thing you can do right now."
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