President Biden Signs Debt Ceiling Legislation Into Law: Prevents Default and Codifies Impending End of the Student Loan Payment Pause

By Hugh T. Ferguson, NASFAA Senior Staff Reporter

Over the weekend uncertainty surrounding the looming debt ceiling limit was averted with the bipartisan effort to prevent default making its way to the White House.

The Senate cleared the House’s bipartisan legislation by a vote of 63-36 on Thursday evening with the measure getting 46 Democrats and 17 Republicans to vote in favor of the bill.

The legislation, which was negotiated by President Joe Biden and House Speaker Kevin McCarthy (R-Calif.), was formally signed into law over the weekend and now sets the stage for the appropriations process to begin in earnest. However due to spending caps for fiscal years 2024 and 2025 programs housed within the Department of Education (ED) are likely to face challenges in sustaining their funding levels from previous years.

As a reminder 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.

Publication Date: 6/5/2023

Eileen E | 6/5/2023 9:54:34 AM

Does this mean loan repayment will be starting on Sept 1st?

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President Biden Signs Debt Ceiling Legislation Into Law: Prevents Default and Codifies Impending End of the Student Loan Payment Pause

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