House Passes Bipartisan Debt Ceiling Deal That Would End Student Loan Payment Pause

By Hugh T. Ferguson, NASFAA Senior Staff Reporter

The House on Wednesday evening passed a bipartisan deal to raise the debt ceiling and address future spending levels, all but staving off the potential consequences of a default on the national debt.

The bill was passed by a vote of 314-117, with the GOP-led chamber leaning on a number of votes from congressional Democrats to advance the measure. 

The package also contains a provision that would codify the Biden administration’s planned resumption of student loan repayments — while also preventing another possible extension — by sunsetting the payment pause and interest accrual 60 days after June 30, 2023.

Negotiators also included language in the bill that would require Congress to complete the appropriations process before Jan. 1, 2024, otherwise the federal government would be subject to an automatic continuing resolution that would prevent a government shutdown by implementing a 1% funding cut from the previous fiscal year. This provision would only be in effect for fiscal year 2024 and 2025 spending bills.

The bill now heads to the Senate, which in the coming days is expected to clear the bill for President Joe Biden’s signature.

While the measure still needs to go through some parliamentary procedures, the Senate is expected to wrap up consideration of the bill before the federal government would be forced to default on its debt.

 

Publication Date: 6/1/2023


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