Administration Extends Student Loan Repayment Pause Beyond Dec. 31
On Nov. 22, the Department of Education (ED) announced that
it was extending the pause on student loan repayment, interest and collections
due to an Oct. 21 action by the U.S. Court of Appeals for the Eighth Circuit that
granted a request for an emergency stay from six states that have sued to block
the Biden-Harris administration’s student loan forgiveness plan. The appeals
court said it would hear the case on an expedited basis.
The Department’s announcement states that “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.”
In August, ED extended the COVID-era pause in student loan
repayments, interest accrual and collections through Dec. 31, 2022, and informed
those with student loan debt that they should be prepared to resume monthly payments
in January 2023. But this latest action extends the resumption until sometime in 2023.