Home Career Biden Administration Extends Student Loan Repayment Holiday

Biden Administration Extends Student Loan Repayment Holiday

36
0

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

Anadolu Agency | Anadolu Agency | Getty Images

On Tuesday, the Biden administration announced it would extend the pause on federal student loan payments until the end of June, or if it can move forward with a debt forgiveness plan.

Federal student loan payments were scheduled to resume in January.

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

“We are extending the payment pause because it would be very unfair to require borrowers to pay a debt they would not have to pay if it weren’t for the baseless lawsuits brought by Republican officials and special interests,” said Education Minister Miguel Cardona. the statement said.

More from Personal Finance:
Why crypto investor protection has to do with orange groves
December is do-or-die time for a Secure 2.0 retirement account.
This map shows the states with the highest and lowest credit scores

The pause will be extended to 60 days after the Biden administration is allowed to implement its student loan forgiveness plan and the lawsuit is resolved, according to a news release from the U.S. Department of Education. If he is unable to comply with his policy by June 30, 2023 and the legal issues are still pending, student loan repayment will resume 60 days after that.

The Department of Education is extending its pandemic aid policy for the eighth time.

Federal student loan payments have been suspended since March 2020 the coronavirus pandemic hit the US first and crippled the economy. Rebuilding accounts for more than 40 million Americans will be a huge task, and the Biden administration hoped to ease the transition by first forgiving a large portion of student debt.

However, shortly 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 have attacked the policy in court. Two of those lawsuits were successful, at least temporarily ending the aid, and the Department of Education closed the loan cancellation portal this month.

This was recently stated by the head of the Department of Education student loan default rates can skyrocket if the loan forgiveness plan is thwarted “due to ongoing confusion about what they owe.

Biden tweeted about the expansion.

“I am confident that our student debt relief plan is legitimate. But it’s suspended because Republican officials want to block it,” Biden tweeted.

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

This is hot news. Check for updates.

Source link

Previous articleAppeals court rules New York violated state law but doesn’t have to review education budget
Next articleGlass-like shells of diatoms help turn light into energy in dim conditions — ScienceDaily