The Biden administration on Tuesday extended the pause on federal student loan payments, saying it wants to give the Supreme Court time to weigh in on litigation over President Biden’s plan to cancel billions of dollars in debt for millions of borrowers.
“Callous efforts to block student debt relief in the courts have caused tremendous financial uncertainty for millions of borrowers,” Education Secretary Miguel Cardona said. “We’re extending the payment pause because it would be deeply unfair to ask borrowers to pay a debt that they wouldn’t have to pay, were it not for the baseless lawsuits brought by Republican officials and special interests.”
The Education Department, which owns and manages the government’s $1.5 trillion student debt portfolio, said payments would not restart until 60 days after the department was legally allowed to proceed with Mr. Biden’s promised debt cancellation.
The department also said that if the courts have not resolved the issue by June 30, 2023, it will restart payments 60 days later.