Joe Biden extends student loan payment suspension until June 2023

0
1
Joe Biden extends student loan payment suspension until June 2023
google news

President Joe Biden’s administration announced on Tuesday that the pause on student loan payments would be extended until “no later than June 30, 2023,” while the legality of Biden’s attempted debt transfer is determined by federal courts.

Payments have been suspended since March 2020, when former President Donald Trump issued the pause amid the coronavirus pandemic. The suspension has been extended six times since it was first issued.

In August, Biden announced plans to forgive up to $20,000 in student debt for Pell Grant recipients and up to $10,000 for individual borrowers who earn less than $125,000 a year or couples. declaring joint income of $250,000 or less. At the time, Biden extended the student loan payment break through Dec. 31, saying the extension would be granted “one last time.”

Payments will resume 60 days after Biden’s Department of Education is cleared to implement the program or when the dispute is resolved, whichever comes first. If the dispute is not resolved by the June 30 deadline, borrowers must begin making payments 60 days after that date.

“I am convinced that our student debt relief plan is legal. But he’s on hold because Republican officials want to block him,” Biden said. tweeted. “That’s why @SecCardona is extending the payment break until June 30, 2023 at the latest, giving the Supreme Court time to hear the case in its current term.”

However, Biden’s loan forgiveness program was struck down by two different federal courts.

Following a lawsuit led by Nebraska Attorney General Doug Peterson and Missouri Attorney General Eric Schmitt, the United States Court of Appeals for the Eighth Circuit in October issued an administrative stay to block the program. Biden while awaiting the call, which dealt a blow to his debt transfer attempt.

Then Texas federal judge Mark Pittman declared Biden’s loan forgiveness program illegal earlier this month, leading the administration to stop accepting new applications.

Biden’s education secretary, Miguel Cardona, called the lawsuits “baseless,” in an email sent to the candidates.

cardona said:

Unfortunately, a number of lawsuits have been filed challenging the program which has blocked our ability to pay your debt at this time. We firmly believe that the lawsuits are without merit, and the Department of Justice has appealed on our behalf. Your application is complete and approved, and we will discharge your approved debt if and when we prevail in court. We will keep you posted as there are new developments.

More than 23 million people reportedly applied for the program before applications closed.

Last week, the Biden administration urged the U.S. Supreme Court to drop the Eighth Circuit’s emergency injunction motion pending appeal.

“However, we are not going to back down in our fight to give families a break. That’s why the Justice Department is asking the United States Supreme Court to rule on the case,” Biden said. said tuesday. “But it’s not fair to ask tens of millions of borrowers eligible for relief to resume paying off their student debt while the courts consider lawsuits.”

However, some student debt forgiveness campaigners were unimpressed with Biden’s decision to extend payments, calling it a “bare minimum.”

“The least the Biden administration can do is not collect a debt it promised to cancel,” said Debt Collective spokesperson Braxton Brewington. “This extended break is necessary, but also the bare minimum.”

Breitbart News

google news
Previous articleHave you quit your job in the past year? We want to hear about it.
Next articleSee North West Turning Kim Kardashian Into “Mommy Grinch”