President Joe Biden announced on Tuesday that his administration was extending its pause on student loan repayments through June 30, 2023, in light of Republicans fight a legal battle over its debt forgiveness program.
“It is not fair to ask tens of millions of borrowers eligible for relief to resume paying their student debt while the courts consider the lawsuit,” Biden said in a video statement.
Biden began rolling out his long-awaited student loan relief plan last month, offering to forgive $10,000 in student loans for people earning less than $125,000 a year or people whose households earn less than $250,000. $ per year. But after several Republican-led states filed lawsuits to block the program from moving forward, a conservative federal appeals court issued a stay. stop temporarily the Biden administration to act on the plan while the courts consider the lawsuit.
It was just days after people started asking for debt relief, creating massive confusion for borrowers.
“The ruthless efforts to block student debt relief in court have caused enormous financial uncertainty for millions of borrowers who cannot budget for families or even plan vacations without a clear picture of their student debts, and that’s just plain untrue,” the secretary said. of Education Miguel Cardona said Tuesday in a statement.
It would be “deeply unfair to ask borrowers to pay a debt they would not have to pay were it not for the baseless lawsuits by Republican officials and special interests,” he continued.
The Biden administration has also asked the United States Supreme Court last week to intervene and lift the lower court’s injunction on the loan relief program.
“The appeals court’s flawed injunction leaves millions of economically vulnerable borrowers in limbo, uncertain about the size of their debt and unable to make financial decisions with an accurate understanding of their future repayment obligations.” , Solicitor General Elizabeth Prelogar wrote in the application.
The Supreme Court has yet to render its decision.