Biden Administration Extends Student Loan Repayment Freeze as Forgiveness Program Continues to Face Legal Challenges

Biden Administration Extends Student Loan Repayment Freeze as Forgiveness Program Continues to Face Legal Challenges

On Tuesday, Nov. 22nd, Joe Biden extended the student loan repayment freeze following the legal challenges his administration is facing regarding their Student Loan Forgiveness Program.

After announcing his plan to cancel $10,000 in federal student loans per borrower or $20,000 for Pell Grant recipients, numerous conservative groups have challenged the decision, including a North Texas federal judge who referred to the plan as “unlawful.”

While the plan is on hold due to the pending court case, some borrowers have received an email from the U.S. Secretary of Education informing them of their eligibility and approval status. The letter mentions the numerous lawsuits that have blocked their ability to discharge borrowers’ debt.

The Letter concludes with:

“We believe strongly that the lawsuits are meritless, and the Department of Justice has appealed on our behalf. Your application is complete and approved, and we will discharge your approved debt if and when we prevail in court. We will update you when there are new developments.

The Biden-Harris Administration is committed to helping borrowers as they recover from the pandemic.

Education is a great equalizer, and we will never stop fighting for you!”

According to the Biden administration, the freeze will conclude 60 days after a decision is made on the Student Loan Forgiveness program. If the suit last until June 30th or fails to become implemented, the freeze will end 60 days after that, according to the Department of Education.

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