Student Loan Payment Pause: Will The Pause On Student Loans Be Extended?

Back in November, the U.S. Department of Education announced an extension of the pause on student loan repayment, interest, and collections, setting a deadline on June 30, 2023. However, in the event that the courts have not managed to make a final decision on debt forgiveness before the aforementioned date, payments will resume two months later. "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," said 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." Meanwhile, it has been reported that the Supreme Court will begin to hear arguments over the US government's plan at the end of this month. Higher education expert Mark Kantrowitz told CNBC that repayments could potentially restart as soon as May depending on the court's ruling. "If the court issues a ruling a few weeks after the Feb. 28 hearing, repayment could restart in May or June," Kantrowitz said. Read Also : Energy relief: Who is eligible to receive up to $450 this week?