11/15/2022

Biden Aides Consider Extending Student Loan Freeze Amid Court Defeats

The debt forgiveness discussions are preliminary

White House officials are weighing extending a pause on student debt payments after a federal appeals court blocked President Biden’s plan to cancel up to $20,000 in debt per borrower, according to two people with knowledge of the matter.

In August, Biden announced that the administration would implement student debt forgiveness while simultaneously ending a moratorium on student debt payments that started during the pandemic. But Biden’s plan has so far been thwarted in the courts. The U.S. Court of Appeals for the 8th Circuit, by a 3-0 vote on Monday, issued an injunction preventing the administration from going forward with discharging debt, and a Texas judge last week declared the program unlawful in a separate ruling.

Although the Biden administration has vowed to defend the program in court, White House officials have in recent days discussed the possibility of extending the debt freeze again if they are unable to move forward with the president’s initial program. Payments had been scheduled to resume on Jan. 1 in conjunction with the loan forgiveness.

Please select this link to read the complete article from The Washington Post.