SAN DIEGO — People swamped with student loan debt may be getting a little help from President Joe Biden as his administration extended the pause Tuesday while student loan debt relief is stalled up in the courts.
Now, borrowers will not have to pay back their loans at the start of the new year.
Some students and graduates near San Diego State University are relieved the Biden Administration is extending the pause on student loan debt repayment as legal battles leave many of them in limbo.
“It’s unfortunate we live in a system that we have to pay to receive an education,” student Lauren Salaz said. “So, any type of help is very much appreciated.”
The pause on repayment was expected to expire on Jan. 1, but now will be extended until June 30 of next year or 60 days after the litigation has been resolved.
“It’s great for us right now,” said Joseph Ireland who took out student loans. “It’s putting a band aid on a bigger issue with student loans but it’s helping us though so we’re happy about that.”
The Biden Administration’s plan to forgive $10,000 of federal student loan debt and $20,000 for Pell grant recipients has been blocked by court orders.
“The initial plan to cancel the debt has been halted and is being appealed, so what you don’t want to get is a situation where you know the debt forgiveness is being appealed and could eventually be reinstated and having people make payments in the interim and not benefiting then from that cancellation,” University of San Diego Economics Professor Alan Gin said.
The Department of Education says 26 million people already applied for the relief and 16 million approved so far.
But court orders are blocking it from accepting any new applications.