December 9, 2022

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Biden administration extends student loan debt repayment holiday

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President Joe Biden delivers remarks on protecting Social Security and Medicare and lowering prescription drug costs in Hallandale Beach, Florida, on Nov. 1, 2022.

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The Biden administration on Tuesday announced that it will extend the payment pause on federal student loans until after June or when its able to move forward with its debt forgiveness plan.

Federal student loan bills had been scheduled to resume in January.

The administration’s move comes in response to a federal appeals court ruling last week that imposed a nationwide injunction on the debt relief plan.

“We’re extending the payment pause because it would be deeply unfair to ask borrowers to pay a debt that they wouldn’t have to pay, were it not for the baseless lawsuits brought by Republican officials and special interests,” Education Secretary Miguel Cardona said in a statement.

The pause will be extended until 60 days after the Biden administration is allowed to implement its student loan forgiveness plan and litigation is resolved, according to a press release by the U.S. Department of Education. If it can’t proceed with its policy and the legal challenges are still unfolding by June 30, 2023, student loan payments will restart 60 days after that.

It’s the eighth time the U.S. Department of Education has extended the pandemic-era relief policy.

Federal student loan payment have been on pause since March 2020, when the coronavirus pandemic first hit the U.S. and crippled the economy. Resuming the bills for more than 40 million Americans will be a massive task, and the Biden administration had hoped to ease the transition by forgiving a large share of student debt first.

Yet not long after President Joe Biden announced his sweeping plan to cancel up to $20,000 in student debt for millions of Americans, a number of conservative groups and Republican-backed states attacked the policy in the courts. Two of these lawsuits have been successful in at least…



2022-11-22 16:00:01

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