The Biden administration on Tuesday introduced it should prolong the freeze on federal pupil
mortgage funds to June 2023. That is the eighth extension since March 2020.
Secretary Miguel Cardano tweeted Tuesday afternoon that the U.S. Division of
Schooling is extending the scholar mortgage cost pause till there’s a decision within the
lawsuits in opposition to the administration’s pupil mortgage reduction plan, which may grant as much as
$20,000 in forgiveness to tens of millions of debtors.
“I’m assured that our pupil debt reduction plan is authorized. But it surely’s on maintain as a result of Republican
officers wish to block it,” President Biden stated in an announcement. The pause was initially set to
expire on Dec. 31, after Biden prolonged it in August across the identical time he introduced the
pupil mortgage forgiveness program. On the time, the White Home known as that extension “one closing
time.” However the administration had additionally meant for its pupil mortgage forgiveness program to
start canceling as much as $20,000 in debt for low- and middle-income debtors earlier than January.
This system has but to be carried out because it faces a number of authorized challenges.