The Biden administration is extending the COVID-era pause in student loan debt payment requirements amid legal uncertainty around the president’s loan forgiveness plan.
According to a White House official, the pause will extend to either (1) 60 days after June 30 or (2) 60 days after the Supreme Court determines the legality of the forgiveness plan, whichever comes sooner, NBC News reported.
When Biden announced the plan to forgive up to $20,000 of student debt for some borrowers, it was in tandem with the announcement that the Department of Education was directing loan services to once again begin requiring loan debt repayments. The extension now also applies to interest that would accrue on debt obligations.
President Joe Biden’s plan to provide millions of borrowers with up to $20,000 in student loan forgiveness is now on hold after a U.S. judge in Texas blocked the plan on Friday. Ayelet Sheffey with The Insider joins LX News to discuss what’s next for borrowers.
This is a developing story.
Soruce : https://www.nbcchicago.com/news/national-international/biden-administration-extending-pause-in-student-loan-payments/3003803/