Biden Administration Pauses Student Loan Payments for 8 Million Amid Court Block of SAVE Plan
Education Secretary Cardona Promises Interest-Free Forbearance While Fighting Court Ruling
According to the report of Common Dreams, the Biden administration has paused student loan payments for 8 million people because a court blocked the SAVE plan, which was meant to reduce student debt. U.S. Secretary of Education Miguel Cardona said the court’s ruling could seriously harm borrowers if it stays in place. He promised that while the administration fights the ruling in court, borrowers will not accrue interest and will be in a temporary, interest-free forbearance.
Even though the Supreme Court previously blocked a larger debt cancellation plan, the Biden administration is still pushing for relief and preparing for the upcoming election. Cardona emphasized their commitment to making college more affordable and mentioned that they have already approved $169 billion in relief for about 4.8 million people.
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$169 Billion in Relief Approved: Biden Admin Pauses Student Loan Payments for 8 Million Borrowers Amid Ongoing Legal Battles (PHOTO: Common Dreams)
Advocates Call for Full Debt Cancellation Amid Student Loan Payment Pause and Legal Challenges
Advocates, like the Student Borrower Protection Center and the American Federation of Teachers, supported the pause but called for more action, including full debt cancellation. They pointed out that ongoing legal issues and political obstacles are causing a lot of stress for borrowers and urged continued efforts for complete debt relief.
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