The freeze on federal student loan payments was initially implemented by former President Donald Trump in March 2020 as part of the pandemic relief efforts.
Subsequently, the payment pause was extended eight times by both the previous and current administrations.
The United States Education Department officially confirmed that student loan borrowers will soon be required to resume repaying their loans, ending a three-year pause on payments.
The date for the commencement of repayments remains uncertain, as it is contingent upon the Supreme Court’s ruling on the student loan forgiveness plan, as per Erudera report.
Education Secretary Miguel Cardona recently said that student loan payments would recommence within 60 days of the Supreme Court’s decision on the Biden-Harris Administration’s student debt relief plan or 60 days after June 30.
“We communicated that after the Supreme Court decision is made, loan repayments will start within 60 days of the decision,” Cardona said during a hearing held by the House Committee on Education and the Workforce on May 16.
Cardona also earlier testified before the Senate Committee on Appropriations a few days ago, confirming that payments would resume no later than June 30. However, he said the Education Department is eagerly awaiting the court’s decision on the plan.
The freeze on federal student loan payments was initially implemented by former President Donald Trump in March 2020 as part of the pandemic relief efforts. Subsequently, the payment pause was extended eight times by both the previous and current administrations.
During his presidential campaign, President Joe Biden made a commitment to cancel up to $10,000 in federal student loans for each borrower.
Over 615,000 student loan borrowers have been granted debt cancellation through the Public Service Loan Forgiveness program since 2021, as the United States administration under President Joe Biden temporarily expanded eligibility.
In a press release issued on May 8, the US Department of Education revealed that $42 billion in federal student debt relief will be achieved through the forthcoming cancellation of loans for an additional 6,000 borrowers enrolled in the PSLF program.
“To date, the Biden-Harris team has kept that promise for more than 615,000 teachers, nurses, social workers, service members, and other public servants by approving a combined $42 billion in student loan debt forgiveness” in a statement released earlier in May.
