The White House has once again extended the federal student loan payment pause as it battles lawsuits threatening to derail its sweeping student debt forgiveness plan.
Students may be off the hook for payments until summer 2023, the Department of Education said Tuesday. But if the Supreme Court decides the fate of Biden’s plan to cancel up to $20,000 in student debt per borrower before June 30, forbearance could end sooner.
This marks the eighth time the government has lengthened interest-free forbearance, though the Biden administration had insisted Dec. 31 would mark the final expiration date.
“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,” Secretary of Education Miguel Cardona said in a statement.
Unless the president orders forbearance to be…
This article was written by Eliza Haverstock and originally published on www.nerdwallet.com