Student loan repayment moratorium extended through June 2023 by Biden

President Biden delivers remarks during the Congressional Picnic on the South Lawn of the White House on July 12. Photo: Chip Somodevilla/Getty Images

The White House on Tuesday announced that it is extending the pause on student loan repayments through June 30, 2023.

The big picture: The latest extension comes as the Biden administration's student loan forgiveness plan remains in legal limbo. The pause on repayments had been set to expire in December.

  • The Biden administration last week asked the Supreme Court to lift a lower court ruling that blocked the program — its latest attempt to revive it.
  • A federal appeals court earlier last week blocked Biden's program, after a federal judge in Texas also blocked the plan.
  • Some 43 million student borrowers eligible for relief are as a result stuck in financial uncertainty as litigation proceeds.

What they're saying: "I'm completely confident my plan is legal," Biden said in a video on Tuesday announcing the student loan repayment pause.

  • "But right now it's on hold because of these lawsuits. We're not going to back down though on our fight to give families breathing room."
  • "But it isn't fair to ask tens of millions of borrowers eligible for relief to resume their student debt payments while the courts consider the lawsuit."

Of note: Biden said the June extension timeline "would give the Supreme Court an opportunity to hear the case in its current term."

State of play: Biden in August announced his plan to cancel up to $20,000 in student debt for Pell Grant recipients and up to $10,000 for individual borrowers who make under $125,000 per year.

  • The Department of Education has begun alerting student loan forgiveness applicants that they have been approved for relief under plan.
  • As litigation plays out, the department pulled the relief application offline after millions of borrowers had already signed up.

Editor's note: This story has been updated with additional details.

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