Last Payment? At the end of November, I made a payment of $5,496, leaving an exact balance of $20K in my Aidvantage account. I'm hoping that will be my last student loan payment.
Since 2019, I have paid over $100,000 in student loan payments! When I think about what $100K could have funded - a down payment on a house, my retirement fund, bucket list trips, etc. - I feel somewhat disheartened. But I can't change the past; I can only learn from it and move forward.
And guess what? I'm almost debt free, people! If Biden's student loan forgiveness program proceeded as planned, I would have a very different post right now. But the forgiveness program has been on hold since late October when the 8th U.S. Circuit Court of Appeals granted the emergency petition of a Republican-led lawsuit by six states.
Due to ongoing legal challenges, the Biden administration extended the student loan repayment freeze, which was supposed to end December 31. According to the Education Department, payments will resume 60 days after the litigation is resolved, or 60 days after June 30, 2023, whichever comes first.
The Supreme Court has agreed to consider the Biden administration’s appeals in both the Missouri and North Texas cases. I don't know which way they will go, but let's say I'm not feeling as hopeful as I was in August. And now we have to endure a few more months of uncertainty and legal pundits speculating on the outcome.
Am I anxiously awaiting an answer? No. That position means I'm putting my power in the hands of someone else (government). Given my 2022 goal was to be debt free by year end, this lingering $20K is not something I want to tolerate far into 2023. So, here's my plan for the first quarter of 2023:
January - March 2023: Aggressively save approximately half of the $20K balance. If the Supreme Court shoots down the forgiveness plan (or a decision is still pending after March 31), use the savings accumulated during Q1 2023, along with other savings, to completely pay off the balance.
Final 2022 Thoughts: Despite falling short of my goal, I'm incredibly grateful to God for the discipline, employment and health to come so far in four years! This journey is not over yet, but it is coming to a close.
Given student loans have been a huge part of my financial life for over two decades, I will always have something to share about the topic. However, there is life after student loans, and I want to share that life with you. Look out for more on this in 2023!
Happy New Year!