Biden halts payment of student loan debt until June 2023

The Biden Administration on Tuesday extended the pause of federal student loan repayment and interest accrual through June 2023. The measure comes after successive judicial setbacks to the government's student debt forgiveness plan. Despite the judges' decisions, President Joe Biden insists his plan is legal and blames the Republican Party for blocking it.

Joe Biden set June 30, 2023 as the deadline for implementing the plan, hoping that during that period the Supreme Court would review pending litigation. The President had originally extended the pause in federal student loan repayment in August until Dec. 31, 2022.

An "illegal" measure

The measure, announced with great fanfare by the Biden administration, included forgiveness of up to $10,000 for borrowers with annual salaries below $125,000. Recipients of the Pell Grant (which assists low-income families) get forgiveness of up to $20,000.

However, beyond the complaints of the Republican Party, several courts have noted the illegality of this plan. A few days ago, a federal court in Texas called Biden's plan "one of the greatest exercises of legislative power without congressional authority in history," comparing it to tyranny.

However, the government insists on its intention to move forward with the student debt cancellation plan. The Justice Department asked the Supreme Court to rule on the case with the intention of moving it forward as soon as possible.