The US Department of Education has stated that interest will start to accrue on federal student loan again on September 1.
The revelation was anticipated since removing the suspension of student loan payments, which has been in place since the Covid-19 epidemic began in March 2020 owing to economic instability.
Student Loan Payment Pause Set to End
A significant issue for Republican lawmakers to negotiate while extending the debt ceiling.
After hearing about the lawsuit against Biden’s loan forgiveness scheme that has made it all the way to the Supreme Court, it was inevitable that the payment and interest pause would come to an end.
The education department’s statement clarifies the precise date of payback for tens of millions of borrowers, since the Joe Biden administration had previously stated that payments would resume 60 days after the dispute is settled or on June 30, 2023.
In a scathing response to those opposing what would be a historic loan forgiveness program, the US secretary of education, Miguel Cardona, said callous attempts to block student debt relief in the courts.
Millions of borrowers are in a great deal of financial limbo, unable to set family budgets or even plan for the holidays in the absence of a clear understanding of their debt obligations. He added that this is simply wrong.
Read more: Supreme Court’s Call On Joe Biden’s Plan For Student Loan Forgiveness
Biden-Harris Administration’s Backing for Student Debt Relief
The Biden-Harris administration is battling to provide tens of millions of Americans with necessary student loans relief, and I want borrowers to know that we have their backs.
In August 2020, Vice President Joe Biden made his loan forgiveness proposal public.
He declared that his administration will forgive up to $20,000 in Pell grant recipients’ federal student debt and up to $10,000 in other borrowers’ debt.
Borrowers could not make more than $125,000 yearly, or $250,000 for married couples filing jointly, to be eligible for student debt forgiveness.
Read more: Student Loan Repayment Pause Will Soon End; What’s Next?