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The Student Loan Payment Pause is Being Extended Again

The Student Loan Payment Pause is Being Extended Again

Some good news for everyone stressed about student loan payments that were paused during COVID set to resume on January 1: The Biden administration announced this week that’s not happening.

Because President Biden’s federal student loan forgiveness plan is currently being challenged in court, those with outstanding student loan payments due won’t have to make payments until that is resolved. 

“We’re extending the payment pause because it would be deeply unfair to ask borrowers to pay a debt that they wouldn’t have to pay, were it not for the baseless lawsuits brought by Republican officials and special interests,” Education Secretary Miguel Cardona said in a statement.

Payments currently set to resume January 1 won’t be required again until 60 days after court challenges are settled. If the litigation isn’t resolved by June 30, payments will resume 60 days after that, the Education Department said in a statement.

A federal appeals court last week blocked the administration from carrying out Biden’s plan to cancel as much as $20,000 in debt for some borrowers.

The decision followed a ruling earlier this month from a federal judge in Texas finding the plan unlawful. The Department of Education has stopped accepting applications for loan forgiveness, thrusting millions of Americans into financial limbo.

“I’m confident that our student debt relief plan is legal,” Biden said in a tweet. “But it’s on hold because Republican officials want to block it.”

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