Student loan payments have been extended until June



CNN

The Biden administration is again extending the moratorium on federal student loan payments, which began in March 2020 to help people struggling financially due to the Covid-19 pandemic.

The extension comes according to the Biden administration Student Loan Forgiveness Program Binding in courts. Officials had told borrowers that the forgiveness program, which could provide a borrower with up to $20,000 in loan relief, would be implemented before loan payments resume in January.

The suspension of payments will last for 60 days after the case is settled. If the scheme is not implemented and cases are not resolved by June 30, payments will resume after 60 days, the education department said.

“I fully believe that my plan is legitimate,” said President Joe Biden In a video recording On Twitter Tuesday, he mentioned his student loan forgiveness program.

“But while the courts are considering the case, it is not fair to ask crores of borrowers who are eligible for relief to repay their student loans,” he added.

Last week, the Department of Justice The Supreme Court has asked Entering and reactivating the Student Loan Forgiveness Program when there are legal challenges. The plan was halted by a lower court judge in Texas on November 10.

The fee stay extension gives the Supreme Court time to hear the case during its current term, Biden said.

The administration previously said the most recent extension would be the last until the end of December.

Tuesday’s announcement is the eighth time the payment resumption date has been changed from March 2020.

Borrower balances are effectively frozen, with most federal student loans not required to make payments. During this time, accrual of interest is stopped and collection of unpaid debt is also suspended.

This story has been updated with additional information.

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