Biden Administration Extends Student Loan Payment Pause Through June 2023
On November 22, while the recent action on student loan debt relief continues to be litigated, the Biden administration announced another extension of the pause on student loan repayment. This means that instead of resuming payments on January 1, 2023, borrowers will not be required to make payments on their student loans until 60 days after Biden’s forgiveness program goes into effect or 60 days after June 30, 2023, whichever comes first. As mentioned in a previous PAEA article, Biden’s student loan forgiveness plan would cancel up to $10,000 in outstanding debt for non-Pell Grant recipient borrowers, and up to $20,000 for Pell Grant recipients, with an annual individual income of less than $125,000 or household income of $250,000.
This latest suspension of student loan payments marks the continuation of a long series of executive actions that have been taken to suspend monthly payments and interest on a majority of federal student loans since the start of the COVID-19 pandemic. Such actions are a direct result of consistent pressure from outside stakeholders calling on recurring extensions of the moratorium on student loan payments and interest accrual until a plan is finalized to ensure widespread debt relief.
Those who are interested in learning more are invited to access the November 22 announcement from the U.S. Department of Education or contact Tyler Smith at tsmith@PAEAonline.org.
