DENVER (KDVR) — Just under 300,000 Coloradans will be on the hook for their full federal student loan amounts in October following Friday’s U.S. Supreme Court ruling.
The Supreme Court has made its final ruling on student debt relief, ending the almost yearlong uncertainty borrowers have had on the future of their loans. In a 6-3 decision, the conservative majority of the Supreme Court struck down Biden’s plan that would have given up to $20,000 in loan forgiveness for more than 40 million borrowers.
Student loan borrowers owe a total of $1.7 trillion nationwide, about $29 billion of which is among the borrowers in the state of Colorado.
Over a third of Colorado’s federal student loan borrowers would have been approved for loan forgiveness, according to a White House report released in January. About 295,000 borrowers would have been fully approved for the forgiveness plan.
Despite the ruling, student loan payments that have been paused for the last three years are set to resume this fall. Loans will begin accruing interest on September 1, and borrowers will have to start making payments again on October 1.
This will add more to the average Coloradans’ monthly bills than any single segment of the inflation that has occurred in the last two years. The average monthly student loan repayment is $460, up from $393 in 2020, according to the Education Data Initiative.