Student loan forgiveness: Congress considers new repayment start date

Student loan forgiveness: Congress considers new repayment start date

Congress is hustling to pass legislation to increase the federal borrowing limit and avoid a potentially calamitous default on the nation’s debt.

A deal struck by President Joe Biden and House Speaker Rep. Kevin McCarthy includes an adjustment to the administration’s effort to provide student loan relief and aid to millions of borrowers.

Biden’s administration wants to waive $10,000 to $20,000 in debt for nearly all borrowers. His authority to do that is currently being considered by the Supreme Court.

In the meantime, Republicans also have tried to stop the pause on student loan payments, which Biden has repeatedly extended. Right now, the official date for repayment is June 30, 2023.

Biden agreed to end that pause as part of the debt deal. People who would federal student loans would restart payments at the end of August.

Now, Congress will consider whether to authorize the spending deal.

The fate of Biden’s broader student loan relief, meanwhile, will be decided at the Supreme Court, which is dominated 6-3 by its conservative wing.

During oral arguments in the case, several of the justices expressed deep skepticism about the legality of Biden’s plan. A decision is expected before the end of June.

Some 40 million borrowers would be eligible for relief; 20 million would see their entire balance erased.

Other efforts to update and streamline education loans and repayment options, like the Public Service Loan Forgiveness (PSLF) program, also are underway.