Student Loan Forgiveness Update: What Biden’s Latest Move Means For Borrowers

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President Biden vetoed a bill that would repeal student loan forgiveness and reverse the current extension of the student loan pause. Here's what it means for borrowers.

Ending the student loan pause via the debt ceiling bill is distinct from the repeal efforts in the Congressional Review Act. The Congressional Review Act would have nullified Biden’s most recent extension of the student loan pause, which began after last December, potentially causing chaos for borrowers who benefited from the extension during the last several months.

Nevertheless, advocates for student loan borrowers have been critical of Biden’s compromise, arguing that removing any chance of another extension of the payment pause will undermine the administration’s ability to help borrowers. And a recent released this week suggests that millions of borrowers may not be ready for an abrupt return to repayment.While Biden has effectively neutralized Republican-led efforts to repeal his student loan forgiveness plan through Congress, the initiative still remains at risk. Two federal courts blocked the program last fall in response to legal challenges, and the administration appealed those decisions to the Supreme Court.

 

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