Biden administration extends Student Repayment Loan Pause
The Biden student loan repayment pause was going to expire at the end of 2022. However, the Biden administration is extending it now into 2023 amid a lawsuit.
Almost all federal student loan payments have been deferred since the COVID-19 pandemic began in early 2020.
Republicans opposed Biden’s plan to relieve up to $10,000 of federal student loan debt for low-to-middle-income borrowers and up to $20,000 for Pell Grant recipients. How to Get Car Title Loans with No Credit Risk: 10 Easy Steps to Know
Biden has extended the repayment pause multiple times, and it was supposed to expire on December, 31.
As the administration asks the Supreme Court to review lower-court orders blocking Biden’s student debt relief program, Tuesday’s extension will alleviate uncertainty for borrowers.
“Our student debt relief plan is legal.” “However, Republican officials are blocking it,” Biden tweeted. “
In order to allow the Supreme Court time to hear the case in its current term, [Secretary of Education Miguel Cardona] is extending the payment pause until no later than 60 days after June 30, 2023.”
Biden’s program was ruled illegal earlier this month by a federal judge in Texas, although the Department of Justice appealed. In a separate lawsuit, the federal appeals court issued an injunction against Biden’s relief on behalf of six states, arguing that financial institutions would suffer if borrowers didn’t have to pay their outstanding balances.
In an attempt to push the program through, the Biden administration asked the Supreme Court to take a look at the matter.
Miguel Cardona, Secretary of Education, had criticized the efforts made by Republicans to block the relief.
Cardona said that the Biden administration “expressed resolve to fight for essential student debt relief aimed at tens of millions of Americans.
What is the Bident Student Loan Program and who is eligible?
US citizens with incomes below $125,000 or households earning less than 250,000 dollars can receive $10,000 in federal student loan forgiveness through the Biden Student Loan Program.
An additional $10,000 in relief is available to Pell Grant recipients who demonstrate greater financial need.
How to apply for student loan forgiveness
The Department of Education launched its student loan forgiveness application on October 17, 2022.
Biden had announced that borrowers with federal student loans could get up to $20,000 forgiven.
Borrowers will have until Dec. 31, 2023, to complete their applications.
You will need your full name, Social Security number, date of birth, and email address to apply online.
The application does not require you to enter your AGI, but only those who meet the income thresholds can apply.
