Joe Biden holding out for Supreme Court offers another student loan payment pause extension: The White House is putting a moratorium on student loan payments through June 30, 2023, President of United States Joe Biden said Tuesday, as his plan for comprehensive student loan debt forgiveness gets tied up in the courts. The moratorium was due to end on 31 December, but that date was aligned with the plan for collective debt relief.
In a video message posted on Twitter, Joe Biden (US President) defended his plan for far-reaching student loan forgiveness and said extending the moratorium was a way to address ongoing legal challenges. “I believe our student loan relief plan is legal. But it is stalled because Republican authority want to block it,” he said.
The exact end of the pause is not fixed. The Education Department said payments would begin two months after the litigation ends or the collective debt relief program is implemented. This may run till June 30, but borrowers will not be required to make payments for an additional two months. The extension coincides with the end of the current Supreme Court session.
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In the video message, United States President Joe Biden slammed “Republican special interests” who have successfully sued to stop his administration’s student loan cancellation program. The administration appealed to the Supreme Court to reverse the order of the lower court, in which it was ruled that the loan waiver scheme could not be carried forward.
Roughly 26 million people have applied for student loan debt relief, and over the weekend borrowers received notices from the Department of Education that their loans will be canceled once the litigation is resolved.
Education Secretary Miguel Cardona said, “I want borrowers to know that the Biden-Harris administration has their back and we are as committed as ever to providing needed student loan relief to millions of Americans.”
The Department of Education warned earlier in the day that resuming payments without massive relief “could lead to historically large increases in the amount of federal student loans and defaults as a result of the COVID-19 pandemic.
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