Biden to extend student loan repayment freeze as relief program is tied up in courts

The Biden administration is but once more extending the pause on federal scholar mortgage funds, a profit that started in March 2020 to assist individuals who have been struggling financially because of the Covid-19 pandemic, a supply conversant in the plan stated.

The Division of Schooling will announce it’s extending the freeze one other six months with the primary funds due two months after June 30, the supply stated, except a Supreme Court docket resolution on the president’s scholar mortgage reduction program comes first.

The administration had beforehand stated the latest extension can be the final, and funds have been scheduled to restart in January.

However the administration had additionally meant for its scholar mortgage forgiveness program to start canceling as much as $20,000 in debt for low- and middle-income debtors earlier than January. This system has but to be applied because it faces a number of authorized challenges.

This story is breaking and shall be up to date.