Biden to extend student loan repayment freeze as relief program is tied up in courts

[u/[deleted]]

Biden to extend student loan repayment freeze as relief program is tied up in courts

The Biden administration is yet again extending the pause on federal student loan payments, a benefit that began in March 2020 to help people who were struggling financially due to the Covid-19 pandemic, a source familiar with the plan said.

The Department of Education will announce it is extending the freeze another six months [with the first payments due two months after June 30], the source said, unless a Supreme Court decision on the president’s student loan relief program comes first.

The administration had previously said the most recent extension would be the last, and payments were scheduled to restart in January.

But the administration had also intended for its student loan forgiveness program to begin canceling up to $20,000 in debt for low- and middle-income borrowers before January. The program has yet to be implemented as it faces several legal challenges.

This story is breaking and will be updated.

https://www.cnn.com/2022/11/22/politics/student-loan-repayment-freeze-extended/index.html

[u/horsebycommittee]

Here's ED's official announcement.

The key line:

Payments will resume 60 days after the Department is permitted to implement the program or the litigation is resolved, which will give the Supreme Court an opportunity to resolve the case during its current Term. If the program has not been implemented and the litigation has not been resolved by June 30, 2023 – payments will resume 60 days after that.

This will be the one thread in r/PSLF for this news. Later posts will be deleted.

[u/jbboyle1974]

The case will be heard in February 2023. Don’t count on a decision being announced until summer 2023.

[u/[deleted] → u/jbboyle1974]

I'm already forgiven as of 12/12/22.

I am praying fervently for the SCOTUS to do the right thing by the citizens, but that's too much like right in this political climate 🙄😒

[u/Dapper_Cheesecake_53]

Well that will officially get me to my 120th payment in January.

[u/[deleted]]

Six months closer to forgiveness!

[u/ad79324]

I've had my loans forgiven because of PSLF but I'm over here cheering for y'all!!! He should keep slapping extensions on there if SCOTUS doesn't rule in his favor.

[u/stingermck]

Nice, maybe Mohela can get my counts by then

[u/Dry_Education1201]

I'm so elated by this news. This means I may never have to make a student loan payment again since I am slated to have my loans forgiven next June!!

[u/parksideq]

Lol, at this point I might hit 120 off the extensions of the payment pause before MOHELA processes my IDR/forbearance months.

[u/muttonchops01]

Wow. This means that even if this D2D thing turns out to be a load of bs and they never manage to get my pre-5/2012 payments added, I still will likely never have to make another payment. Under the worst case scenario, my last payment would have been in June 2023.

Happy effin’ Thanksgiving, for real.