Biden to extend student loan hiatus as court battle drags on

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Biden to extend student loan hiatus as court battle drags on
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President Joe Biden waves as he boards Air Force One, Monday, Nov. 21, 2022, at Andrews Air Force Base, Md. (AP Photo/Patrick Semansky) The Associated Press

WASHINGTON (AP) — President Joe Biden announced Tuesday that his administration will extend the pause on federal student loan payments while the White House fights a legal battle to save his plan to cancel parts of the debt.

“It’s not fair to ask tens of millions of borrowers eligible for relief to resume paying their student debt while the courts consider the lawsuit,” Biden said in a video posted to Twitter.

The moratorium was set to expire on Jan. 1, a date Biden set before his debt cancellation plan stalled in the face of legal challenges from conservative opponents.

From now on, it will extend up to 60 days after the resolution of the lawsuit. If the lawsuit has not been resolved by June 30, payments would resume 60 days after that.

The Justice Department last week asked the Supreme Court to review the matter and reinstate Biden’s debt cancellation plan.

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