Following Biden’s administration’s request for the Supreme Court to review the lower court decision that prevents the Department from granting relief to student loan borrowers under the loan forgiveness programme, the US Department of Education has decided to extend the student loan repayment pause in an effort to reduce students’ uncertainty.
Payments will restart 60 days after the Department wins approval to move forward with the student debt relief programme or the legal dispute is settled, according to a news statement from the Department of Education.
Miguel Cardona, the US secretary of education, stated that millions of borrowers have been adversely affected by attempts to thwart the student debt relief programme because they are unable to make plans without knowing exactly what their student loan obligations are, which results in “tremendous financial uncertainty” for them.
I want borrowers to know that the Biden-Harris Administration has their backs and that we are still fully committed to fighting to provide tens of millions of Americans with necessary student loan relief. Because of the bogus lawsuits filed by Republican officials and special interests, Cardona stated that it would be extremely unjust to compel borrowers to pay a debt that they would not be required to do so.
The Biden administration announced plans to offer assistance to student loan borrowers who received Pell Grants throughout their studies and whose yearly income during the COVID-19 epidemic was under $125,000 (for individuals) or under $250,000 (if they are married) in August of this year.
The Department of Justice has previously asked the Supreme Court to take into account the lower courts’ rulings against Biden’s student loan forgiveness programme, and it has recommended the Court take up the student loan forgiveness case and give borrowers the support they require, according to the press release.