Student loan payment pause will end this year, education secretary confirms
(CNN) — The pause on federal student loan payments is still set to end later this year, Education Secretary Miguel Cardona confirmed this week.
The pandemic-related pause has been in place for more than three years and has been extended eight times – even sometimes after the Biden administration declared the latest extension was final.
But Cardona reiterated Tuesday that the current timeline remains in place. It ties the restart date to litigation over the administration’s separate, one-time student loan forgiveness program, which has been taken up by the Supreme Court.
Payments are set to resume 60 days after the Supreme Court issues its ruling, or 60 days after June 30 – whichever comes first. The justices are expected to rule in late June or early July, but a decision could come earlier.
“We communicated that after the Supreme Court decision is made, loan repayments will start within 60 days of the decision,” Cardona said when pressed during a hearing held by the House Committee on Education and the Workforce Tuesday.
If the Biden administration is allowed to move forward with the loan forgiveness program, low-and middle-income borrowers may be eligible for up to $20,000 in debt relief before payments restart.
Last week, Cardona also confirmed the restart date at a Senate Appropriations subcommittee hearing.
“We are committed to making sure that once a decision is made, that we are going to resume payments 60 days after. But no later than June 30, we’re going to begin that process,” he said.
