In 2022, President Biden, Vice President Harris, and the U.S. Department of Education announced a three-part plan to help working and middle-class federal student loan borrowers transition back to regular payment as pandemic-related support expires. This plan includes loan forgiveness of up to $20,000.
At this time, Student Loan Debt Relief Is Blocked. Courts have issued orders blocking the student debt relief program. As a result, at this time, the U.S. Department of Education is not accepting applications and are seeking to overturn those orders. If you’ve already applied, your application will be on hold until the courts have rendered a decision.
The student loan payment pause is extended until the U.S. Department of Education is permitted to implement the debt relief program or the litigation is resolved. Payments will restart 60 days later. If the debt relief program has not been implemented and the litigation has not been resolved by June 30, 2023 — payments will resume 60 days after that.
If you need assistance with creating a plan to pay back your loans, College Now is here to help. Schedule an appointment at our resource center here!