Biden extends student loan payment pause as debt relief plan remains on hold
President Joe Biden announced Tuesday he will extend the payment pause on federal student loans as the plan remains blocked in court.
The Biden administration announced Tuesday that it would extend the payment pause on federal student loans, as President Joe Biden’s debt cancellation plan remains blocked in court.
The payment pause, which was previously set to expire in January, will be extended until June 30 or until the litigation is resolved — whichever comes first. If the litigation has not been resolved by June 30, payments will resume 60 days after that.
President Joe Biden speaks about student debt relief alongside Secretary of Education Miguel Cardona on Oct. 17, 2022, in Washington.Alex Wong / Getty Images“I’m completely confident that my plan is legal,” Biden said in a video announcement. “But it isn’t fair to ask tens of millions of borrowers eligible for relief to resume their student debt payments while the courts consider the lawsuit.”
Biden in August announced he would cancel up to $20,000 in debt per eligible borrower, but the move was quickly met with legal challenges.
The Biden administration last week asked the Supreme Court to reinstate the loan forgiveness plan after it had been blocked by a federal appeals court.