Biden administration to extend pause on student loan repayments

The Biden administration is extending the pause on student loan payments until no later than June 30, 2023, as the administration's plan to forgive up to to $20,000 in loans is held up in court. President Biden announced the extension Tuesday in a video posted to the White House Twitter account. 

Student loan repayments were supposed to resume Jan. 1, 2023, for the first time since the COVID-19 pandemic began. But a federal appeals court has blocked the president's student loan forgiveness program, and the administration has asked the Supreme Court to reinstate their stalled plans. For now, the fate of the program remains unclear, with millions of borrowers in limbo.

The White House announced in August that Mr. Biden would be taking executive action to forgive $10,000 in loans for Americans making under $125,000 a year or $250,000 for married couples. Pell grant receipents are eligible for additional $10,000 to be forgiven. 

"I'm confident that our student debt relief plan is legal," Mr. Biden tweeted. "But it's on hold because Republican officials want to block it. That's why @SecCardona is extending the payment pause to no later than June 30, 2023, giving the Supreme Court time to hear the case in its current term."

Payments would restart 60 days after the Supreme Court decision or on June 30, whichever comes first. The Supreme Court has not yet said whether they will take the case. 

Since the Biden administration announced the plan, it has faced a number of legal challenges, and has been blocked by two federal courts. The White House has said that nearly 26 million Americans have applied for the program, and 16 million applications have already been approved. 

— Kristin Brown contributed to this report 

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• Student Loan