Biden: Student loan repayment pause extended to June 2023 – Spectrum News NY1 | Team Cansler

The federal moratorium on student loan repayments has been extended to June 30, 2023, President Joe Biden announced in a video message Tuesday.


what you need to know

  • The federal moratorium on student loan repayments has been extended to June 30, 2023, President Joe Biden announced in a video message Tuesday
  • The news comes as legal challenges to Biden’s student debt relief plan have put him on hold
  • Earlier this month, the Department of Education stopped accepting applications after a federal judge in Texas ruled that the plan could not go into effect; The program was already temporarily barred from seeking relief as a separate legal challenge was fought by Republican-run states in court
  • By early November, 16 million Americans had been approved for student debt relief

The news comes as legal challenges to Biden’s student debt relief plan have put him on hold. Earlier this month, the Department of Education stopped accepting applications after a federal judge in Texas ruled the plan could not go into effect. The program was already temporarily barred from seeking relief as a separate legal challenge was fought by Republican-run states in court.

“As Americans continue to recover from the pandemic, my administration is working to provide student debt relief to millions of working-class and middle-class families across the country,” President Biden said in a video message. “But special-interest Republicans and elected officials have sued to deny that relief, even to their own constituents.”


Biden has expressed confidence that his plan is legal and vowed that “we will not back down” in their attempts to forgive student debt, but said that “it’s not fair” to ask millions of Americans to pay off student loans as a challenge play in court.

“For this reason, the Secretary of Education is extending the pause in student loan payments while we seek remedy in the courts,” Biden said, adding that they will extend it “no later than June 30, 2023,” the Supreme Court states enough time to rule on the case during the current term.

“Payments will resume 60 days after the end of the pause,” Biden said, adding, “I will never apologize for helping working- and middle-class families recover from the economic crisis caused by the pandemic.” , and I will continue to work to get the government to deliver for all Americans.”

By early November, 16 million Americans had been approved for student debt relief. To date, more than 26 million have applied, the White House said in a leaflet on Tuesday.

Biden announced in mid-October the opening of the online application, a short digital form that requires your name, social security number, and contact information. But following a decision by a Texas federal judge in mid-November, a notice on Student Aid’s website said the Department of Education has temporarily stopped accepting applications as challenges to the policy go to court.

“Unscrupulous efforts to block student debt relief in the courts have created tremendous financial uncertainty for millions of borrowers who are unable to set their family budget or even plan for the holidays without a clear picture of their student debt obligations, and that is simply wrong ”, Education Foreign Minister Miguel Cardona said in a statement on Tuesday.

“I want borrowers to know that the Biden-Harris administration has got their back and we remain committed to canceling essential student debt for millions of Americans,” added Dr. Cardona added. “We are extending the pause because it would be deeply unfair to require borrowers to pay a debt they would not be required to pay were it not for the baseless complaints from Republican officials and special interests.”

The Biden administration has said about 40 million people could be eligible for student debt relief. Americans qualify for the program if they earn less than $125,000 per year. Many receive up to $10,000 in forgiveness, while those who received a Pell Scholarship while in school are eligible for up to $20,000.

In an email to eligible borrowers over the weekend, Dr. Cardona said they “strongly believe the lawsuits are unfounded” and will begin paying down debt “if and when we prevail in court.”

“The Biden-Harris administration is committed to helping borrowers recover from the pandemic,” wrote Dr. Cardona after promising to keep updated on future developments. “Education is a great leveler and we will never stop fighting for you!”

To date, the Biden administration has granted “nearly $48 billion in targeted credit easing” to more than 1.8 million borrowers, the White House said Tuesday.

Spectrum News’ Austin Landis contributed to this report.

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