The payment pause, which was previously set to expire in January, will be extended until June 30 or until the litigation is resolved — whichever comes first. If the litigation has not been resolved by June 30, payments will resume 60 days after that.
“I’m completely confident that my plan is legal,” Biden said in a video announcement. “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.”
Biden in August announced he would cancel up to $20,000 in debt per eligible borrower, but the move was quickly met with legal challenges.
The Biden administration last week asked the Supreme Court to reinstate the loan forgiveness plan after it had been blocked by a federal appeals court.
Biden said that the new June 30 deadline for student loan payments to resume would give the Supreme Court enough time to hear the case.
This is a developing story. Please check back for updates.