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<\/figure>\n Borrowers whose student loan repayments were set to restart in the new year just got a few more months of breathing room.<\/p>\n The pause on student loan repayment, interest, and collections, which would\u2019ve been up on Dec. 31, is being extended, the US Department of Education (DoE) announced<\/a><\/span> yesterday (Nov. 22).<\/p>\n The moratorium was meant to coincide with the Biden administration\u2019s student loan forgiveness plans for millions, which would shave off up to $20,000<\/a><\/span> for each eligible borrower. But Republican backlash and legal action has led to several lower courts blocking the debt relief program. The Biden administration has asked the Supreme Court to review the decisions. In a video message<\/a><\/span>, president Joe Biden said he\u2019s \u201ccompletely confident\u201d his plan is legal.<\/p>\n Payments will resume 60 days after the department is permitted to implement the program or the litigation is resolved, the press release stated. If neither happens by June 30, 2023, payments will resume 60 days after that. <\/p>\n Aug. 24:<\/strong><\/a><\/span> Targeted student debt relief program is announced\u2014up to $10,000 for borrowers with annual income during the pandemic of under $125,000 (for individuals) or under $250,000 (for married couples or heads of households), and up to $20,000 for Pell Grant recipients. <\/p>\n Oct. 17:<\/strong><\/a><\/span> StudentAid.gov goes live, letting borrowers submit applications for loan forgiveness.<\/p>\n Oct. 21:<\/strong><\/a><\/span> The 8th Circuit Court of Appeals issues a stay on the debt relief plan.<\/p>\n Nov. 10:<\/strong><\/a><\/span> After Texas judge Mark Pittman, who was appointed by former President Donald Trump, blocks the program, the education department stops taking more applications for loan forgiveness. Applications that have already been submitted are on hold<\/a><\/span>. <\/p>\n Nov. 14:<\/strong><\/a><\/span> The 8th US Circuit Court of Appeals in St. Louis issued a nationwide injunction extending the temporary block.<\/p>\n Nov. 18:<\/strong><\/a><\/span> The Biden administration asks the Supreme Court to lift the nationwide injunction barring the program.<\/p>\n Nov. 22:<\/strong><\/a><\/span> The Biden administration extends the pause on repayments while awaiting a decision from the apex court.<\/p>\n \u201cWe\u2019re extending the payment pause because it would be deeply unfair to ask borrowers to pay a debt that they wouldn\u2019t have to pay, were it not for the baseless lawsuits brought by Republican officials and special interests,\u201d \u2014US Secretary of Education Miguel Cardona<\/em><\/a><\/span><\/p>\n<\/blockquote>\n $400 billion:<\/strong><\/a><\/span> Size of the student loan forgiveness program<\/p>\n 26 million:<\/strong><\/a><\/span> People who\u2019ve provided the DoE with the necessary information to be considered for debt relief<\/p>\n 16 million:<\/strong><\/a><\/span> Borrowers who\u2019d been approved for debt forgiveness before the education department temporarily stopped accepting applications <\/p>\n 8:<\/strong><\/a><\/span> Times the Biden administration has extended the pause on student loan repayments.<\/p>\n 225:<\/strong><\/a><\/span> Organizations led by the Student Borrower Protection Center who called on Biden to extend the pause to avoid throwing \u201cmillions of borrowers into financial catastrophe\u201d in a Nov. 21 letter<\/p>\n 6:<\/strong><\/a><\/span> Republican-led states\u2014Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina\u2014that sought to block the debt relief plan.<\/p>\n $1.5 trillion:<\/strong><\/a><\/span> How much student borrowers owe the US government.<\/p>\n Republicans argue<\/a><\/span> the program, which is still relatively small<\/a><\/span> considering the overall student debt burden, needs to be shelved because it is ethically wrong to leave out Americans who\u2019ve already paid off debt, and it will make inflation worse. While much of the GOP\u2019s backlash is politically motivated, some of the concerns have been validated by think tanks:<\/p>\n \ud83d\udcc8 The program will cost more than double the amount saved through the climate and tax Inflation Reduction Act, \u201ccompletely eliminating any disinflationary benefit from the bill,\u201d according to<\/a><\/span> nonprofit and nonpartisan organization Center for a Responsible Federal Budget. <\/p>\n \ud83d\udcb0 Almost a third of all student debt is owed by the wealthiest 20% of households and only 8% by the bottom 20%, an analysis by liberal-leaning Brookings Institution found<\/a><\/span>. <\/p>\n \ud83d\udcb8 This way of canceling student debt is actually regressive in that it gives six times more benefit to the top 20% than the bottom 20%, a study<\/a><\/span> by the Becker Friedman Institute at University of Chicago found.<\/p>\n \ud83c\udf10 Biden\u2019s plan for student loans forgiveness goes live<\/a><\/span><\/p>\n \ud83d\udeab<\/a><\/span> The US should cancel a lot more than $10,000 in student debt<\/a><\/span><\/p>\n \ud83e\udd14 Americans don\u2019t believe Biden will cancel student debt<\/a><\/span><\/p>\n<\/div>\nBrief timeline of the student loan forgiveness program<\/h2>\n
The education secretary on extending the student loan repayment pause<\/h2>\n
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Student loan forgiveness, by the digits<\/h2>\n
Criticism for Biden\u2019s student debt relief plans<\/h3>\n
Related stories<\/h2>\n