In trying to help those who were facing financial hardship as a result COVID-19 outbreak Biden administration It again extends a suspension of federal student loan payments, which went into effect in March 2020.
The extension comes as the student loan forgiveness program is suspended during a Biden administration in the courts.
Before loan repayments are scheduled to resume in January, officials assured debtors that the debt forgiveness program, which offers up to $20,000 In debt relief for every borrower.
The payment hold will last until 60 days after the end of the lawsuit. Payments will begin 60 days after June 30 if the program has not been implemented and the legal dispute has not been resolved by then, according to the Department of Education.
He said, “I am quite confident that my plan is legal.” President Joe Biden In a video posted on Twitter Tuesday, by reference to the Student Loan Forgiveness Program.
“But it is not fair to ask tens of millions of borrowers who qualify for forgiveness to resume student debt payments while the courts hear the case,” he added.
The program remains on hold until the courts settle
With legal challenges continuing, the Ministry of Justice This week he requested that Supreme court Intervene and revive the Student Loan Forgiveness Program. on me November 10tha judge in a lower court in Texas invalidated the program.
According to Biden, extending the payment halt gives Supreme court Enough time to hear the matter during this period.
The government said the most recent extension granted until the end of December was final.
Since March 2020, the payment resumption date has been pushed back eight times, with Tuesday’s notice being the most recent.
Since then, the majority of federal student loans have had no payment requirements, essentially freezing borrowers’ balances.
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