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 Light and Vision/Shutterstock 2 minute read Published September 08, 2022 Written by Hanneh Bareham Written by Hanneh BarehamArrow RightStudent loans reporter Hanneh Bareham specializes in everything related to student loans and helping you finance your next educational endeavor. She aims to help others reach their collegiate and financial goals through making student loans easier to understand. Hanneh Bareham Edited by Chelsea Wing Edited by Chelsea WingArrow RightStudent loans editor Chelsea has been with Bankrate since early 2020. She is invested in helping students navigate the high costs of college and breaking down the complexities of student loans. The U.S. Department of Education announced an eighth extension to the payment pause and interest waiver on November 22. The student loan moratorium will continue until 60 days after the U.S. Department of Education is permitted to implement the student loan forgiveness program, the lawsuits opposing President Joe Biden’s student loan forgiveness plan reach a conclusion, or June 30, 2023, whichever comes first. U.S. Secretary of Education Miguel Cardona says that the Biden administration is extending the payment pause and interest waiver because it would be “deeply unfair” to require borrowers to make payments on student loans that may ultimately be forgiven. On August 24, 2022, President Biden announced a “final” seventh extension to the student loan moratorium in conjunction with his student loan forgiveness plan. Federal student loans were set to restart repayment in January 2023. But, six lawsuits were filed to block the president’s plan. Two of these lawsuits, by Pacific Legal Foundation and the Brown County Taxpayers Association, were dismissed because of a lack of legal standing. A plaintiff must demonstrate legal standing before the court can consider the lawsuit on the merits. A lawsuit by six state Attorneys General was dismissed because of a lack of legal standing and was appealed to the 8th Circuit Court of Appeals. The appeals court initially provided a temporary stay and later a preliminary injunction, preventing the Biden administration from discharging student loans while the appeal is pending. The Biden administration has appealed the preliminary injunction to the U.S. Supreme Court. MORE FROMFORBES ADVISOR Best Travel Insurance CompaniesByAmy Danise Editor Best Covid-19 Travel Insurance PlansByAmy Danise Editor The court merged the legal standing and merits phases of a lawsuit by the Job Creators Network, finding that the plaintiffs had legal standing and ruling that the president’s plan is unconstitutional. The court vacated the program, preventing the Biden administration from accepting more student loan forgiveness applications or discharging student loans. The Biden administration is appealing this ruling to the 5th Circuit Court of Appeals. Two other lawsuits, one by the Arizona Attorney General and one by the Cato Institute, are still pending. of the White House in Washington, DC. - Biden announced that most US university graduates still trying to pay off student loans will get $10,000 of relief to address a decades-old headache of massive educational debt across the country. (Photo by OLIVIER DOULIERY / AFP) (Photo by OLIVIER DOULIERY/AFP via Getty Images)As Biden’s sweeping student loan forgiveness program faces significant legal setbacks, attention is turning to the ongoing pause on student loan payments. That relief is set to expire on December 31, after multiple extensions by two presidents over the course of nearly three years. But while this was widely expected to be the final few months of the student loan pause, the legal battle surrounding Biden’s student loan forgivenes initiative is putting pressure on the administration to extend the pause yet again. Here’s where things stand. Biden Administration Had Linked Student Loan Forgiveness and Student Loan PauseBiden announced his unprecedented student loan forgiveness program in August. Under the initiative, millions of federal student loan borrowers with government-held loans could receive one-time student loan forgiveness of $10,000 or more. A substantial portion of the 40 million borrowers who would qualify were expected to have their loan balances significantly reduced or even eliminated. The initiative was set to take off this month. 26 million borrowers submitted a student loan forgiveness application in October, and the Education Department had already approved 16 million of those borrowers for loan forgiveness. But last week, a federal court in Texas struck down the program as illegal, and the Education Department suspended applications for the program. The Biden administration has vowed to appeal, but the future of the initiative is now in doubt, and the dispute may ultimately end up before the U.S. Supreme Court. The Biden administration had previously linked the loan forgiveness program with the end of the student loan payment pause, which has been in place since March 2020 as a result of the Covid-19 pandemic. The pause, which has also suspended student loan interest as well as collections efforts against borrowers in default, was originally intended to last six months. But President Trump and President Biden issued multiple short-term extensions. MORE FROMFORBES ADVISOR Best Travel Insurance CompaniesByAmy Danise Editor Best Covid-19 Travel Insurance PlansByAmy Danise Editor By December 31 — the end-date of Biden’s most recent extension — the relief will have been in place for nearly three years. Several top administration officials had previously argued that restarting payments in January would serve as an inflationary counterbalance for widespread student loan forgiveness. And Biden had announced the “final” extension of the student loan pause to the end of the year in conjunction with his unveiling of the one-time student loan forgiveness initiative. Advocacy Groups Call on Biden to Extend Student Loan Pause Again In Response to Court Ruling on Student Loan ForgivenessFacing the possibility of a protracted legal battle over Biden’s student loan forgiveness initiative, advocacy groups are now calling on the administration to extend the student loan pause yet again. “The devastating result of this court's decision... is that tens of millions of student loan borrowers across the country now have their vital debt relief blocked,” said Student Borrower Protection Center deputy executive director and managing counsel Persis Yu in a statement last week. “It is disappointing to see this judge pervert the law in order to achieve a politically motivated outcome. The Biden Administration cannot now resume payments on January 1st. It must use all of its tools to fight to ensure that borrowers receive the debt relief they need.” “The purpose of the President’s debt cancellation plan is to help middle and working-class Americans heal from the harm caused by the pandemic. We share this mission and will work diligently to ensure each borrower has the resources they need to get back on their feet. That starts right now, with an immediate extension of the federal student loan payment pause,” said Natalia Abrams, President of the Student Debt Crisis Center. “For three years, borrowers have been a political punching bag facing uncertainty about the future of their student loans. The judge’s decision makes the future even more worrisome. President Biden must pause payments further into the future to provide financial stability and peace of mind to 40 million Americans.” Advocates had also expressed concern that the Education Department’s contracted student loan servicers are not at all ready for millions of borrowers to simultaneously resume repayment, with many borrowers reporting long call hold times and delays in processing applications for repayment and loan forgiveness programs. Prior pressure campaigns by student loan borrower advocacy groups and progressives in Congress successfully convinced the Biden administration to extend the student loan payment pause in the run-ups to previous expiration dates. Extension of Pandemic Emergency Could Be Basis for Extending Student Loan PauseLast week, the Biden administration indicated that it will be extending the public health emergency associated with the Covid-19 pandemic into the spring. The administration did not provide a required 60-day notice to states or healthcare providers in advance of lifting the emergency, which suggests that it will continue for at least another several months. The extension of the public health emergency is noteworthy because it has been the basis for the multiple extensions of the student loan payment pause implemented by both President Trump and President Biden. Both presidents relied on the HEROES Act of 2003 to implement the extensions via executive order. The HEROES Act allows for the modification of federal student loan programs during national emergencies. Notably, however, the Biden administration also relied on the HEROES Act to launch the one-time student loan forgiveness initiative, and a federal court struck down the program on the basis that it exceeded allowable authority under the statute. It is unclear if the Biden administration is actively considering another extension of the payment pause, but if it does, it would likely rely on the same statutory basis to implement it. Further Student Loan ReadingStudent Loan Forgiveness Application Taken Down After Court Ruling, Borrowers Left In Limbo Biden Student Loan Forgiveness Plan Is In Peril: Key Takeaways After Court Rules It’s Illegal Can You Apply For Multiple Student Loan Forgiveness Programs? Yes — With Some Caveats A New, Bigger Student Loan Forgiveness Initiative Is Set To Launch — And It’s Not The One That You Think Will student loans be paused again after August 2022?Federal student loan borrowers — and the courts — have more time to figure out what's going on with debt forgiveness before payments resume. The payment pause has been extended through June 30, 2023.
Will Biden extend the student loan repayment pause?Biden extends student loan repayment pause a few more months The president has extended the student loan repayment pause into 2023. Biden said he wants to give lawsuits against debt cancellation time to play out, and the Supreme Court time to weigh in.
Will student loans get extended?1, 2022. The Biden administration on Tuesday announced that it will extend the payment pause on federal student loans until after June or when it's able to move forward with its debt forgiveness plan.
Will student loan payment pause continue?When will student loan payments resume? After multiple extensions since they were first paused in March 2020, student loan payments and interest are now slated to restart 60 days after legal challenges have been resolved, according to the US Education Department.
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Will the student loan forbearance be extended
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