Millions of Americans are still in suspense as they await the Supreme Court’s decision on Biden’s student loan forgiveness plan, which would forgive up to $20,000 in federal student loan debt for each borrower. The Biden administration has prolonged the student loan moratorium in spite of court action, which is cause for alarm. Payments will now resume 60 days after Biden’s proposed debt relief is not implemented and the case is not resolved by June 30, 2023.
Undoubtedly, it wouldn’t be the first extension. Since it started in 2020, the suspension of student loan payments has been extended eight times. However, the probability of another extension would depend, among other things, on the Supreme Court’s decisions.
Student Loan Forgiveness Plan Was Biden’s Idea
If the Supreme Court approves Biden’s planned plan to reduce student loan debt, it appears unlikely that he will attempt to extend the moratorium once again. The administration will instead concentrate on offering debtors relief, which has been blocked since the commencement of litigation.
A second attempt to continue the suspension of Student Loan Forgiveness (together with a freeze on interest) may be made in America if the Supreme Court rejects the plan to decrease student debt. However, considering that the moratorium was part of a pandemic-era aid program and since Biden declared the outbreak to be “finished” in September, it is doubtful if it would pass.
There is debate about how long the Biden administration can continue to suspend student loan repayments given that there is no longer a pandemic emergency in the nation. Biden would likely face fierce resistance if he tries to extend the pause once more, which might make people question his authority and competence.
