Student Debt Relief Plan Confirmed to Resume Before June 30, Education Secretary Says

Education Secretary Miguel Cardona confirmed that the Student Debt Relief Plan would resume its payments no later than June 30. Despite Biden’s eighth extension of the pause, Cardona guarantees that this decision would be the last.

On May 11, Education Secretary Miguel Cardona attested his plans and budget request for the next fiscal year before the Senate Committee on Appropriations. Some lawmakers also interrogated Cardona about U.S. President Joe Biden’s Student Debt Relief Plan that still awaits a final decision from the Supreme Court.

An article in the Business Insider states that due to the lawsuits filed against the Student Debt Relief Plan, Biden reportedly extended the pause for 60 days after June 30 or after the Supreme Court declares its final decision. Nonetheless, Cardona guarantees that this eighth extension will be the last.

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Student Debt Relief Plan Objectives

According to an article in Yahoo, the U.S. Department of Education has already began meeting up with student-loan companies to prepare student borrowers during the resumption of the Student Debt Relief Plan. Documents revealed that the companies were required to resume charging interest on loans by September and borrowers are expected to settle their first monthly payment by October. In addition, the companies were also instructed to notify the borrowers about the resumption of payments after August 31.

Furthermore, the Education Department also prepares to overhaul the system of the Student Debt Relief Plan over the following years. The overhaul includes administering a new income-driven repayment plan that is initially said to be the most affordable among the plans made. In addition, reforms that target debt relief programs such as the Public Service Loan Forgiveness will also be administered.

READ ALSO: Student Debt Relief Plan: 53% Of Borrowers Need Loans Forgiven