White House to Extend Student-Loan Payment Pause to June 30 [View all]

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Last edited Tue Nov 22, 2022, 06:01 PM - Edit history (1)

Source: Bloomberg

President Joe Biden announced that his administration would extend the pandemic-era pause in student loan repayments through June 30 amid legal challenges to his college debt-forgiveness plan. Payments now set to resume Jan. 1 won’t be required again until 60 days after court challenges to Biden’s loan forgiveness plan are settled.

If the litigation is not resolved by June 30, payments will resume 60 days after that, the Education Department said in a statement. A federal appeals court last week blocked the administration from carrying out Biden’s plan to cancel as much as $20,000 in debt for some borrowers.

“I’m confident that our student debt relief plan is legal,” Biden said in a tweet. “But it’s on hold because Republican officials want to block it.” The decision followed a ruling earlier this month from a federal judge in Texas finding the plan unlawful. The Department of Education has stopped accepting applications for loan forgiveness, thrusting millions of Americans into financial limbo.

The fresh pause in loan payments would alleviate uncertainty for borrowers as the administration asks the Supreme Court to review lower-court orders preventing implementation of Biden’s debt-cancellation plan, the Education Department said. “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.

Read more: https://www.bloomberg.com/news/articles/2022-11-22/white-house-to-extend-student-loan-payment-pause-up-to-june-30?srnd=premium

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Article now updated.

Previous article -

President Joe Biden announced that his administration would extend the pandemic-era pause in student loan repayments through June 30 amid legal challenges to his debt-forgiveness plan. Payments now set to resume Jan. 1 won't be required again until June 30 or until 60 days after court challenges to Biden's loan forgiveness plan are settled, according to people familiar with the matter.

A federal appeals court last week blocked the administration from carrying out Biden's plan to cancel as much as $20,000 in debt for some borrowers. "I'm confident that our student debt relief plan is legal," Biden said in a tweet. "But it's on hold because Republican officials want to block it."

The decision followed a ruling earlier this month from a federal judge in Texas finding the plan unlawful. The Department of Education has stopped accepting applications for loan forgiveness, thrusting millions of Americans into financial limbo.

Within the last week, White House senior staff coalesced around the idea of extending the student loan repayment pause as the challenges to the administration's decision worked their way through the court system.

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Just breaking. Short article.

Original article -

The White House plans to extend until as late as June a pandemic-era pause in student loan repayments, according to people familiar with the matter.

Payments now set to resume Jan. 1 won't be required again until June 30 or until after legal challenges to President Joe Biden's student-debt forgiveness plan are settled, the people said.

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