President Biden extends pause on student loan repayments as forgiveness program tied up in courts
WASHINGTON (NEXSTAR) — Federal student loan payments remain at a standstill, as the Biden administration extends the pause on repayments.
This is the eighth time the restart date for payments has been rescheduled, but the Department of Education says they need more time to resolve their legal fight.
“We’re fighting for them,” Education Secretary Miguel Cardona said.
With the Biden administration’s students loan forgiveness program tied up in the courts, the President is again extending the freeze on loan payments for 40 million Americans.
“The reality is what we’re doing is also preventing borrowers from going into default,” Cardona said.
Cardona says it doesn’t appear the administration can provide debt relief before January 1st.
“These lawsuits are slowing us down but they’re not stopping us we’re going to continue to fight,” Cardona said.
Cardona says the extended pause will provide enough time for the Supreme Court to hear the case, and make a final decision about the plan’s legality.
“I remain confident that the court will say the government is correct,” George Washington University Law Professor Alan Morrison said.
Morrison says he expects the Supreme Court to act quickly.
“Maybe before Christmas,” Morrison said.
The Education Department says they will update applicants when there are new developments.
For now, the payment pause will last until 60 days after legal action is resolved. But if the litigation is not resolved by June 30th, payments will resume about 2 months after.