A federal appeals court rejected the Education Department’s request to put a hold on an order from a federal judge in Texas vacating President Biden’s student loan forgiveness program.
applied for forgiveness before the program was halted, and the Education Department approved some 16 million applications. The department recently told borrowers that the administration will discharge the debt if and when it prevails in court.to extend the pause on federal student loan payments.
The pandemic-era freeze, which has been extended multiple times since it was imposed by the Trump administration, had been set to expire on Dec. 31.resume 60 days after the Education Department is allowed to implement the program or the litigation is resolved, officials said. If that hasn’t happened by June 30, payments will resume 60 days later or on Sept. 1. The administration wants to lower borrowers’ balances, or wipe out their debt altogether, before payments resume.
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