Home » Biden administration extends student loan debt repayment holiday to June

Biden administration extends student loan debt repayment holiday to June

by News Times USA


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

Anadolu Agency | Anadolu Agency | Getty Images

The Biden administration on Tuesday announced that it will extend the payment pause on federal student loans until June 30 while its debt forgiveness plan remains blocked by federal courts.

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.

President Joe Biden tweeted about the extension.

“I’m confident that our student debt relief plan is legal. But it’s on hold because Republican officials want to block it,” Biden tweeted.

“That’s why @SecCardona is extending the payment pause to no later than June 30, 2023, giving the Supreme Court time to hear the case in its current term.”

This is breaking news. Please check back for updates.





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