Days before the student loan repayment pause was set to expire, President Joe Biden announced on Aug. 24, 2022 that he is canceling $10,000 in student loan debt for millions of borrowers and extending the pause on payments and interest accrual for federally-held student loans until Dec. 31, 2022. Since that announcement, there have been multiple lawsuits aimed at stopping the debt relief program, two of which ended in court decisions which achieved that goal. The Biden administration has appealed both decisions and has now asked the Supreme Court to hear the case. In the meantime, the Department of Education has extended the repayment pause while the litigation plays out, announcing that the repayment pause will "resume 60 days after the Department is permitted to implement the program or the litigation is resolved ... If the program has not been implemented and the litigation has not been resolved by June 30, 2023 – payments will resume 60 days after that".
NASFAA has compiled the following resources for members and will continue to update this page as more guidance becomes available.
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NASFAA policy experts are available to discuss the implications of the Biden administration's loan cancellation plan. Media inquiries can be directed to NASFAA Director of Communications Allie Arcese.
Publication Date: 12/1/2022