President Joe Biden announced Tuesday that he is extending the pause on student loan repayments through June 30, 2023, the end of the U.S. Supreme Court’s current term.
“I’m confident that our student debt relief plan is legal. But it’s on hold because Republican officials want to block it,” Biden said in a video release. “We’re not going to back down though on our fight to give families breathing room,” Biden continued, explaining the the Department of Justice has asked the U.S. Supreme Court to rule on the case.
“But it isn’t fair to ask tens of millions of borrowers eligible for relief to resume their student debt payments while the courts consider the lawsuit.” The extension through June “would give the Supreme Court an opportunity to hear the case in its current term,” Biden said.
Six Republican-led states have sued to stop the debt forgiveness program, which would cancel up to $20,000 in debt for Pell Grant recipients and as much as $10,000 for people making less than $125,000 per year. The U.S. Court of Appeals for the 8th Circuit halted the program on Oct. 21, preventing the administration from discharging the debts or taking more relief applications. The administration asked the SCOTUS to overrun the block and allow applications to resume while the legal fights continue. A second lawsuit is with the Court of Appeals for the 5th Circuit in Texas is pending as well.
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The Department of Education has started notifying borrowers who applied for relief that their applications have been approved, pending the court’s decision. “Unfortunately, a number of lawsuits have been filed challenging the program, which have blocked our ability to discharge your debt at present,” the email sent to borrowers says. “Your application is complete and approved, and we will discharge your approved debt if and when we prevail in court.”
The Department of Education said in a press release issued with the extension announcement that thus far more than 26 million people have applied for relief, and 16 million borrowers have been approved. Until the court rules, it is not accepting new applications. “If the program has not been implemented and the litigation has not been resolved by June 30, 2023,” the statement says “payments will resume 60 days after that.”
“Callous efforts to block student debt relief in the courts have caused tremendous financial uncertainty for millions of borrowers who cannot set their family budgets or even plan for the holidays without a clear picture of their student debt obligations, and it’s just plain wrong,” said U.S. Secretary of Education Miguel Cardona.
“I want borrowers to know that the Biden-Harris Administration has their backs and we’re as committed as ever to fighting to deliver essential student debt relief to tens of millions of Americans. We’re extending the payment pause because it would be deeply unfair to ask borrowers to pay a debt that they wouldn’t have to pay, were it not for the baseless lawsuits brought by Republican officials and special interests.”
Here is Biden’s video statement, provided for as long as Twitter ends up being able to serve it.
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“I’m confident that our student debt relief plan is legal. But it’s on hold because Republican officials want to block it,” Biden said in a video release. “We’re not going to back down though on our fight to give families breathing room,” Biden continued, explaining the the Department of Justice has asked the U.S. Supreme Court to rule on the case.
“But it isn’t fair to ask tens of millions of borrowers eligible for relief to resume their student debt payments while the courts consider the lawsuit.” The extension through June “would give the Supreme Court an opportunity to hear the case in its current term,” Biden said.
Six Republican-led states have sued to stop the debt forgiveness program, which would cancel up to $20,000 in debt for Pell Grant recipients and as much as $10,000 for people making less than $125,000 per year. The U.S. Court of Appeals for the 8th Circuit halted the program on Oct. 21, preventing the administration from discharging the debts or taking more relief applications. The administration asked the SCOTUS to overrun the block and allow applications to resume while the legal fights continue. A second lawsuit is with the Court of Appeals for the 5th Circuit in Texas is pending as well.
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The Department of Education has started notifying borrowers who applied for relief that their applications have been approved, pending the court’s decision. “Unfortunately, a number of lawsuits have been filed challenging the program, which have blocked our ability to discharge your debt at present,” the email sent to borrowers says. “Your application is complete and approved, and we will discharge your approved debt if and when we prevail in court.”
The Department of Education said in a press release issued with the extension announcement that thus far more than 26 million people have applied for relief, and 16 million borrowers have been approved. Until the court rules, it is not accepting new applications. “If the program has not been implemented and the litigation has not been resolved by June 30, 2023,” the statement says “payments will resume 60 days after that.”
“Callous efforts to block student debt relief in the courts have caused tremendous financial uncertainty for millions of borrowers who cannot set their family budgets or even plan for the holidays without a clear picture of their student debt obligations, and it’s just plain wrong,” said U.S. Secretary of Education Miguel Cardona.
“I want borrowers to know that the Biden-Harris Administration has their backs and we’re as committed as ever to fighting to deliver essential student debt relief to tens of millions of Americans. We’re extending the payment pause because it would be deeply unfair to ask borrowers to pay a debt that they wouldn’t have to pay, were it not for the baseless lawsuits brought by Republican officials and special interests.”
Here is Biden’s video statement, provided for as long as Twitter ends up being able to serve it.
RELATED STORIES:
White House considers next moves after GOP judges rule against student debt relief
This is why we can’t have nice things: Biden’s student loan forgiveness program struck down
Republicans hate Biden’s student debt plan, and know they can count on the Supreme Court to end it
One-third of Latinos stand to have student debt cleared thanks to Biden's relief plan
Republicans screech about student debt cancellation, while borrowers cry in relief