Biden Extends Student Loan Payment PAUSE Until June 2023 Due To Legal Challenges

The suspension of student loan payments will continue until “no later than June 30, 2023,” according to an announcement made on Tuesday by Joe Biden’s administration. Federal courts will decide whether or not Biden’s attempted debt transfer is legitimate.

Since March 2020, when previous President Donald Trump requested the pause amid the coronavirus outbreak, the payments have been suspended. Six times since the initial issuance of the hold, it has been extended.


In August, Biden stated his intention to forgive up to $20,000 in student loan debt for Pell Grant winners and up to $10,000 for borrowers who earn less than $125,000 annually or $250,000 for married couples filing jointly. At the time, Biden said that the extension would be given “one last time” and prolonged the student loan payment moratorium until December 31.

Whenever the case is over or 60 days after Biden’s Department of Education is permitted to administer the program, whichever comes first, the payments will start up again. Borrowers must start making payments 60 days after the June 30 deadline if the lawsuit is not settled by then.

“I’m certain that our debt alleviation strategy for students is legitimate. But because Republican officials want to stop it, it’s on hold, Biden tweeted. Because of this, @SecCardona is prolonging the payment suspension until June 30, 2023, at the latest, to allow the Supreme Court enough time to consider the issue during this term.

However, two distinct federal courts have invalidated Biden’s loan forgiveness program.

The U.S. Court of Appeals for the Eighth Circuit issued an administrative stay to block Biden’s program while an appeal was pending in October as a result of a lawsuit brought by the attorneys general of Nebraska and Missouri, Doug Peterson and Eric Schmitt, respectively. This was a major setback for Biden’s attempted debt transfer.

The administration then stopped accepting new applications after Texas federal judge Mark Pittman earlier this month pronounced Biden’s loan forgiveness scheme illegal.

In an email to applicants, Biden’s education secretary Miguel Cardona referred to the cases as “meritless.”

Cardona said “Unfortunately, a number of legal actions have been taken to contest the program, which has prevented us from currently canceling your debt. The Department of Justice has appealed on our behalf because we fervently think that the claims are without substance. Your application has been granted, and should we win in court, we will discharge the approved debt. When there are any fresh developments, we will keep you informed.”

According to reports, more than 23 million people applied for the program before it closed.

The Biden administration pleaded with the U.S. Supreme Court this week to dismiss the Eighth Circuit’s Emergency Motion for Injunction Pending Appeal.

But we won’t let up in our quest to offer families breathing room. According to Biden, the Department of Justice has asked the Supreme Court of the United States to decide the matter. However, it is unfair to demand that tens of millions of borrowers who qualify for relief start making payments on their student loans while the courts review the complaints.

However, some proponents of canceling student loans were unimpressed with Biden’s decision to increase the payment schedule and referred to it as the “basic minimum.”

Debt Collective spokesman Braxton Brewington stated, “The least the Biden administration could do is not collect on a debt they promised they would erase.” This additional gap is necessary, but it’s also the absolute minimum.






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