Home Markets Biden administration extends student loan repayment holiday until June

Biden administration extends student loan repayment holiday until June

by SuperiorInvest

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

Anadolu Agency | Anadolu Agency | Getty Images

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

Federal student loan promissory notes were due to renew 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 freeze because it would be deeply unfair to ask borrowers to pay a debt they wouldn’t have to pay if it weren’t for the baseless lawsuits brought by Republican officials and special interests,” said Education Secretary Miguel Cardona. he said in a statement.

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

It is already the eighth time that the US Department of Education has extended the aid policy during the pandemic.

Federal student loan payments have been suspended since March 2020, when the coronavirus pandemic it hit the US first and crippled the economy. Restoring 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.

Yet not long after President Joe Biden he announced his sweeping plan to eliminate up to $20,000 in student debt for millions of Americans, a number of conservative groups and state-backed Republicans have challenged the policy in court. Two of these lawsuits managed to at least temporarily stop the aid and the Ministry of Education has closed its loan cancellation portal this month.

This was said recently by the highest representative of the Ministry of Education Student loan default rates could rise dramatically if her loan forgiveness plan is thwarted “due to continued confusion about what she owes.

Biden tweeted about the expansion.

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

“Therefore @SecCardona extends the payment moratorium until June 30, 2023 at the latest, giving the Supreme Court time to hear the case in its current term.”

This is the latest news. Please check for updates.

Source Link

Related Posts

%d bloggers like this: