Suze Orman Says If You Have Student Loan Debt It’s Time To Face a ‘Financial Truth’
Written by
David Nadelle
Edited by
Nicholas Morine
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The tens of millions of borrowers looking to get their student loan debt reduced or wiped out through President Biden’s forgiveness plan had their hopes dashed at the end of June, when the Supreme Court struck the project down.
Although the president promised that “this fight is not over” in response to the decision, Americans saddled with student loan debt will need to make some major financial decisions when interest starts up again in September and repayments resume in October.
As financial advisor and Emmy-winning TV host Suze Orman suggested, many are going to have face a “financial truth” sooner rather than later.
“Now is the time to look at your finances and make sure you can afford to cover your loan payment. You have a few months to readjust your spending so you won’t fall behind on your student loans,” she suggested. “Don’t squander this time. If you are worried about covering your payments, focus on wants vs. needs.”
For borrowers, now is the time to seriously think about lifestyle changes that will need to be made and develop a no-nonsense approach to manage your “needs.”
“I so want you to be able to take the more expensive vacation or shell out money for concerts. Or get your own place,” the popular author and podcaster said. “But those are wants, not needs. Sharing a place with friends, or living back at home are options to consider.”
In response to COVID-19 pandemic, most federal student loans and their interest rates have been paused since March 2020. By rejecting Biden’s student loan forgiveness program, the Supreme Court denied Biden’s 2020 campaign promise to cancel $10,000 worth of student loan debt per borrower.
However, the president has vowed to continue the fight for student loan forgiveness. “Today’s decision has closed one path,” Biden said in remarks made June 30. “Now we’re going to pursue another.” We’ll see if he and the Department of Education can find provide relief via a new loan forgiveness path, but the smart move is to not bank on it.
“I understand how frustrating the Supreme Court’s decision is,” said Orman. “But that’s the law, for now. So right now it’s all about standing in your financial truth and getting ready to restart your student loan repayments this fall. Please don’t ignore this looming big change to your cash flow.”
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