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Biden-Harris Administration doubles down on student debt relief for millions of Americans

WASHINGTON, DC – The suspension of student loan interest, repayment, and collection activities was extended today, according to the U.S. Department of Education. While the Biden-Harris Administration requests the Supreme Court to reconsider the lower-court decisions blocking the Department from offering debt relief for tens of millions of Americans, the extension will reduce uncertainty for borrowers. After the Department is given permission to start the programme or the legal dispute is settled, payments will restart 60 days later, giving the Supreme Court a chance to decide the matter during the current term. Payments will restart 60 days later if the scheme is not implemented and the legal dispute is not settled by June 30, 2023.

“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,” stated 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.”

On August 24, President Biden and Secretary Cardona made plans to offer borrowers with loans handled by the Department of Education targeted student debt relief. Borrowers who got a Pell Grant while in college and had an annual income during the pandemic of under $125,000 for individuals or under $250,000 for married couples or heads of households would be qualified for up to $20,000 in debt cancellation. Targeted student debt relief assists those who are at at danger of delinquencies or default once payments start, tackles the financial effects of the pandemic, and offers borrowers a smooth transition back to repayment.