The White House hopes the six-month extension allows time for the courts to work out the Administration’s debt cancellation plan.
Today, the U.S. Department of Education at the direction of President Joe Biden announced yet another extension of the pause on student loan repayment, interest, and collections.
The White House says the extension will alleviate uncertainty for borrowers as the Biden-Harris Administration asks the U.S. Supreme Court to review the lower-court orders that are preventing the Department from providing debt relief for tens of millions of Americans.
Payments will now resume 60 days after the Department is permitted to implement the program or the litigation is resolved, which will give the Supreme Court an opportunity to resolve the case during its current Term.
If the program has not been implemented and the litigation has not been resolved by June 30, 2023 – payments will resume 60 days after that.
“Callous efforts to block student debt relief in the courts have caused tremendous financial uncertainty for millions of borrowers who cannot set their family budgets or even plan for the holidays without a clear picture of their student debt obligations, and it’s just plain wrong,” said U.S. Secretary of Education Miguel Cardona.
Frank Corder
