I WILL ‘NOT’ PAY OFF MY SCHOOL PAYMENTS In January, Department of Education Tells Borrowers

The Department of Education provides frequent notices to borrowers with an update and reminder that student loan relief has been extended.

Borrowers were first told that they would have to repay their loans in January. But the latest addition could result in a plus six to eight months the relief.

Here’s what borrowers should know.

Student Loan Repayment Summer 2023

Former President Trump first enacted the student suspension in March 2020 in response to the Covid-19 pandemic. The moratorium halted student loan payments for federal student loans, halted interest, and halted collection efforts from defaulted borrowers.

Congress later qualified the relief by passing the CARES Act, which provided six months of student loan protection. But as the pandemic and the recession continued, Trump, and later President Biden, issued short-term extensions. The student loan moratorium is now in its third year.

President Biden’s recent extension of the furlough was supposed to end on December 31. But with Biden’s signature the student amnesty program is one-time. Blocked by federal courtsand the The Supreme Court has set the decision on the plan next year, the administration extended the break to 2023.

“You do NOT have to pay your loans that would have started again in January,” the Department of Education email tells borrowers. “Why are we extending the suspension? Since earlier this year, the Biden-Harris Administration announced a student aid plan for workers and student loans. Millions of Americans have applied for and been found eligible for assistance. But the claims challenged the program and hindered our ability to settle the debt.

The announcement made the extension of student loan approval a matter of fairness in light of the ongoing legal battle. on Biden’s student amnesty plan. “Although the court prevents us from providing the assistance needed to avoid these accidents, we do not think it is fair to ask borrowers to pay off loans that they otherwise would have the payment if it were not for the court to challenge the program,” the department. “Millions of borrowers will be making payments they may not owe, or payments that are higher than they should be, under the Biden-Harris debt relief plan. That’s not fair.”

Republicans have criticized Biden for extending the student suspension. “President Biden’s sixth extension of the student loan repayment freeze brings the total cost of this policy to $195 billion,” said Rep. Virginia Foxx (R-NC), incoming chair of the House Education and Labor Committee, in a speech on the previous House. week. “This is crazy by any measure.”

Supreme Court to hear arguments for Student Amnesty in February

Earlier this week, the Supreme Court schedule an evaluation for February 28, 2023 on two challenges to Biden’s student amnesty program. The court will issue a decision in the coming months, possibly by June.

“We believe our program is legal and have asked the Supreme Court to allow us to move forward with providing credit to tens of millions of eligible Americans,” the Department of Education said in a statement. many emails to borrowers. “The Supreme Court agreed to hear our case and the arguments will be heard in February.”

The student ban “will expire 60 days after the Supreme Court makes a decision on the matter,” the email said. “If no decision has been made by June 30, 2023, payments will resume 60 days after that.”

Student Loan Continuity Benefits Continued

Everything first appearance the student loan ban will continue in Biden’s latest extension. It includes:

  • No fees and no interest accrue on federal student loans, including Direct loans and federally managed FFELP loans.
  • No collection efforts against borrowers with delinquent Direct and FFELP loans.
  • The monthly payment deadline will apply to student loan forgiveness under income-based repayment plans (IDRs) for borrowers in those plans. .
  • The monthly payment deadline will apply to student loan forgiveness under the Public Service Loan Forgiveness (PSLF) scheme for borrowers. to meet all other requirements of the program, including obtaining PSLF work qualification.
  • Borrowers who made voluntary payments while on student leave can apply for a refund by contacting their student loan servicer.

The payment freeze and interest freeze do not apply to commercial FFELP loans or private student loans.

Read more about Student Exemption

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Court Approves $6 Billion in Student Loan Relief for 200,000 Borrowers to Settle Lawsuits.

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