White House Extends Student Debt Payment Pause

November 23, 2022

 

The Biden Administration on Tuesday extended its pause on student loan repayments while federal courts weigh its plan to forgive the debt, according to an announcement from Department of Education.

The payments will now be delayed to resume September 1 instead of January 1 . 

On Thursday, The White House asked the Supreme Court to take up the issue, asking for quick action after the program was blocked in two federal courts in recent weeks, one in St. Louis and the other in Texas.

Biden’s plan promises $10,000 in federal student debt forgiveness to those with incomes of less than $125,000, or households earning less than $250,000. Pell Grant recipients, who typically demonstrate more financial need, are eligible for an additional $10,000 in relief.

The non-partisan Congressional Budget Office has estimated it could cost $400 billion over 30 years.

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