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Biden-Harris Administration Extends Student Loan Repayment Pause

In light of a District Court’s ruling in early November that President Biden overstepped his authority in creating a student debt relief program without congressional approval, the Administration recently announced that it would extend the repayment pause on federal student loans potentially through June 30, 2023 (the exact timing depends on any court rulings). The Biden Administration argued that this will allow the Supreme Court time to provide clarity to borrowers.

In August, the Administration announced plans to forgive $10,000 in federal loan forgiveness for those making less than $125,000 and $20,000 for those making that same amount who received Pell Grants.  However, the proposal was challenged by several states leading a District Court to rule that the Administration had erred and prohibited the plan from moving forward absent a ruling from the Court itself or the U.S. Supreme Court. 

While the Justice Department fights legal challenges in court, borrowers are unable to receive the debt relief promised and the administration has stopped accepting applications for the program.

The Biden administration encourages borrowers to sign up for updates from the Department of Education regarding the program so borrowers can know when any updates are available.


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