President Joe Biden speaks about student loan debt forgiveness at Delaware State University, October 21, 2022, in Dover, Del. The Biden administration has said it will continue to extend the student loan repayment moratorium.
Evan Vucci/AP
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Evan Vucci/AP
President Joe Biden speaks about student loan debt forgiveness at Delaware State University, October 21, 2022, in Dover, Del. The Biden administration has said it will continue to extend the student loan repayment moratorium.
Evan Vucci/AP
The Biden administration is extending a pause on student loan payments – expected to expire later this year – into 2023 while federal bailout promise still hanged in court.
Payments will continue 60 days after the debt relief program is launched, 60 days after the lawsuits are resolved, or 60 days after June 30, if the lawsuit is unsuccessful.
Borrowers have more or less struggled to make their federal student loan payments since the COVID-19 pandemic began in early 2020. The repayment moratorium has been extended several times since, and Biden’s previous extension to December 31 was believed to be the last.
The White House said Tuesday’s extension would ease uncertainty for borrowers as the administration asked the Supreme Court to review lower court orders blocking the student loan forgiveness program. by Biden.
“I am confident that our student debt relief plan is legit. But it is on hold because Republican officials want to stop it,” Biden wrote on Twitter. “That’s why [Secretary of Education Miguel Cardona] is extending the payment pause no later than [60 days after] June 30, 2023, giving the Supreme Court time to hear the case during its current term.”
I am confident that our student loan forgiveness plan is legitimate. But it was postponed because Republican officials wanted to block it.
that’s why @SecCardona is extending the payment moratorium no later than June 30, 2023, giving the Supreme Court time to hear the case within the current time limit. pic.twitter.com/873CurlHFZ
– President Biden (@POTUS) November 22, 2022
Biden announced plans to reduce federal student loans by up to $10,000 for low- to moderate-income borrowers — up to $20,000 for eligible Pell Grant recipients — in August, but fast. quickly met with opposition from the Republican Party.
And in the first day of this month, a federal judge in Texas found Biden’s program illegal, although the Justice Department appealed the decision. Additionally, in a separate lawsuit, a federal appeals court issued a bailout order on behalf of six states, arguing that financial institutions would be harmed if borrowers didn’t pay the amount. their outstanding balance.
The Biden administration has requested Supreme Court to look into the matter in hopes of pushing the program through.
in one statement On Tuesday, Education Secretary Miguel Cardona called Republican efforts to block the bailout “callous” and “completely misguided.”
“I want borrowers to know that the Biden-Harris administration has their back, and we are more committed than ever to fighting essential student debt relief for tens of millions of Americans,” Cardona said.
