Biden administration extends pause in student loan payments – NBC Chicago

The Biden administration is extending the COVID-era pause in student debt payment requirements amid legal uncertainty around the president’s loan cancellation plan.

According to a White House official, the pause will extend to (1) 60 days after June 30 or (2) 60 days after the Supreme Court determines the legality of the pardon plan, whichever comes first, reported. NBC News.

When Biden announced plans to forgive up to $20,000 in student debt for certain borrowers, it was alongside announcing that the Department of Education was ordering loan services to resume demanding debt repayment. loan debt. The extension now also applies to interest that would accrue on debt securities.

President Joe Biden’s plan to provide millions of borrowers with up to $20,000 in student loan forgiveness is now on hold after a US judge in Texas blocked the plan on Friday. Ayelet Sheffey with The Insider joins LX News to discuss what’s next for borrowers.

This is a developing story.