WASHINGTON–The pause on federal student loan payments will end later this year, Education Secretary Miguel Cardona has confirmed.
The pause, which began during the pandemic, has now been in place for more than three years and has been extended eight times. While some have called for student loan debt to be “forgiven,” the Biden Administration has indicated it will not be doing so. Cardona said the current timeline remains in place and it ties the restart date to litigation over the administration’s separate, one-time student loan forgiveness program, which is now before the Supreme Court.
Payments to Start
Payments are set to resume 60 days after the Supreme Court issues its ruling, or 60 days after June 30 – whichever comes first. A ruling is expected late June or early July, but a decision could come earlier.
“We communicated that after the Supreme Court decision is made, loan repayments will start within 60 days of the decision,” Cardona said in comments to the House Committee on Education and the Workforce, according to CNN.
The Biden administration has proposed a loan forgiveness program, low-and middle-income borrowers may be eligible for up to $20,000 in debt relief before payments restart.
Some ‘Confusion’
When the pause ends, roughly 44 million people will have to restart making payments on their federal student loans, and “there is some concern about whether the process will go smoothly,” CNN reported.
“Many people may be confused about how much they owe, when to pay and how,” the report added.
Credit unions can point members who are federal student loan borrowers to FSA website for updates on resuming payments.