As they wait for the Supreme Court’s ruling on Biden’s student loan forgiveness plan, which would erase up to $20,000 in federal student loan debt for each borrower, millions of Americans remain in limbo. Another concern is the timeline for the student loan moratorium, which the Biden administration has continued despite legal action. Currently, payments are set to restart 60 days after Biden’s debt relief proposal has not been enacted and the legal matter has not been settled by June 30, 2023.
It would undoubtedly not be the first extension. The student loan suspension has been renewed eight times since it began in 2020. But, the likelihood of another extension would rely on the acts of the Supreme Court, among other things.
Student Loan Forgiveness Plan Was Biden’s Idea
It seems doubtful that Biden will try to prolong the Student Loan Forgiveness plan once again if the Supreme Court grants the student debt reduction scheme he proposed. Instead, the government will focus on providing debtors with relief, which has been prevented since the start of litigation.
On the other side, if the Supreme Court rejects the Student Loan Forgiveness proposal to reduce student debt, Americans may witness another attempt to extend the suspension of student loan payments (along with a freeze on interest). Nevertheless, it is uncertain if it would pass given that the moratorium was a component of a pandemic-era aid program and that Biden pronounced the outbreak to be “finished” in September.
Also, his government said in May that it would lift the COVID-19 national emergency. There is disagreement about how far the Biden administration’s authority may prolong the suspension of student loan repayments now that the country is no longer experiencing a pandemic emergency. If Biden attempts to extend the halt once more, he will probably encounter strong opposition that might cast doubt on his authority and skills.
