Student borrowers are reminded not to start paying off in January

The federal government has reminded student loan borrowers not to worry about paying back their debt in January.

While lawsuits are against President Joe Biden loan relief are pending in court, the Ministry of Education pointed out that borrowers could wait a while to pay.

“You do NOT have to pay your loan, which would have restarted in January,” the education ministry said in an email sent to borrowers Friday morning.

“We don’t think it’s right to ask borrowers to pay for loans they wouldn’t have had to pay had there been no lawsuits filed against the program,” the email said.

Millions of borrowers in limbo

Student loan repayments have been suspended since the start of the study corona pandemic. However, Mr. Biden’s plan to permanently forgive up to $20,000 in student loans is in limbo as two separate lawsuits challenging the debt cancellation have made their way to the Supreme Court. arguments in it the business will take place in late February or early March.

The administration before extended the temporary pause on payments until June 30 to give the Supreme Court time to rule on the case.

If the court ruled in favor of the administration, “millions of borrowers would make payments they may not owe, or payments that are higher than they should be,” the email said.

Payments will restart 60 days after the Supreme Court issues its ruling. If the court does not rule by June 30, payments will resume on August 31, according to the email.

Meanwhile, millions of Americans who have applied for loan forgiveness await a decision: their debt forgiveness requests were told were approvedbut that the government cannot legally cancel their debt while the lawsuits are pending.

The government claims its plan to cancel $10,000 in debt and $20,000 in low-income borrowers is legal and would provide much-needed relief.

“Targeted student debt relief addresses the financial damage of the pandemic, helps borrowers pay back to principal, and assists borrowers at the highest risk of delinquency or default,” said Friday’s email.

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