Here’s How Long the Latest Moratorium on Student Loan Payments Will Last

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President Biden comprehensive plan Student loan debt forgiveness is for millions of Americans stuck in the courts (We cover those legal troubles in more detail in Here, For borrowers, this is by far the most obvious result of these legal setbacks application Biden’s student loan forgiveness plan is currently not being accepted. earlier this week, Pandemic moratorium on student loans was set to expire on December 31, which would have left millions of Americans unsure about how they would resume their payments.

This week, those millions have something to be grateful for: Biden administration announced It would extend the payment moratorium on federal student loans. Here’s where student loan forgiveness stands right now and what it means for you.

where is student loan forgiveness now

White House on Tuesday Tweeted that “the administration is placing a moratorium on federal student loan repayments to allow the Supreme Court to rule on the matter of the student loan relief program.”

is in response to the detail Federal appeals courts block pardon plan On the grounds that Biden’s plan was an overabundance of power. education department says its federal student aid website That they will keep fighting for the plan, which means student loan forgiveness is likely to end up before the Supreme Court.

Meanwhile, according to President Joe Biden, “it is not fair to ask the tens of millions of borrowers seeking relief to resume their student loan payments while the courts consider the lawsuit.” in a video posted on Twitter on Tuesday.

What does this mean for you

This payment freeze is not indefinite. of the White House Tweet The moratorium will end if the loan waiver plan is able to be settled out of the courts, it said. However, if legal challenges to the program are not resolved by the end of June, the payment freeze will expire on June 30, 2023.

Whether in June or earlier, payments will resume 60 days after the pause ends and the administration is allowed to implement its amnesty plan.

It is worth noting that it is eighth time The Department of Education has extended the pandemic moratorium on student loans. For now, while student loan forgiveness is stuck in the courts, it doesn’t hurt Get your repayment plan in order,

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