White House extends student loan payment pause to June 2023 despite Biden’s pledge
The White House is extending the pause in federal student loan payments until the end of June 2023 in an effort to “ease uncertainty” for borrowers as the Biden administration fights in the Supreme Court to enforce student loan forgiveness by President Joe Biden.
Biden announced in August that he will provide $10,000 in federal student loan debt relief for certain borrowers earning less than $125,000 a year and up to $20,000 for Pell Grant recipients.
The president on Tuesday said he is “confident” his “student debt relief plan is legal.”
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“But it’s on hold because GOP officials want to block it,” Biden tweeted, announcing that Education Secretary Miguel Cardona is “extending the pay pause until June 30, 2023 at the latest, giving time to the Supreme Court to hear the case in its current case.” time limit”.
The new announcement comes after Biden pledged in August to end the COVID-era student loan payment pause on Dec. 31, 2022.
“The pause on student loan payments will end,” the president said on Aug. 25 after announcing his executive order canceling student loan debt for some Americans. “It’s time to resume payments.”
The announcement comes after the Biden administration last week filed an emergency appeal with the Supreme Court, asking to preserve its order to write off student loan debt. The Justice Department asked the high court to block earlier rulings in Texas and Missouri that declared the program unconstitutional.
“Cruel efforts to block student loan debt relief in court have caused great financial uncertainty for millions of borrowers who can’t set their family budgets or even plan vacations without a clear picture of their debt obligations of students, and it’s just plain wrong.” Cardona said in a statement, adding that he wants borrowers to know that the administration “has their backs.”
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“We are as committed as ever to fighting to provide essential student debt relief to tens of millions of Americans,” he said, adding that the extension was put in place because “it would be profoundly unfair to ask borrowers to pay a debt they pay.” I wouldn’t have to pay, if it weren’t for the baseless lawsuits filed by Republican officials and special interests.”
The Department of Education said Tuesday that student loan payments “will resume 60 days after the Department is permitted to implement the program or the litigation is resolved.”
“If the program has not been implemented and the dispute has not been resolved by June 30, 2023, payments will resume 60 days after that,” the department said.
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