What’s Latest On Biden’s Student Loan Forgiveness Plan— Here’s What You Should Know!

To date, U.S. President Biden’s student loan forgiveness plan is put on hold until further notice. The delay has been extended until a final decision will be made about the relief plan.

Students on Student Loan Forgiveness Plan

In March 2020, the U.S. government decided to pass the CARES Act. This is intended to help Americans whose finances were negatively impacted by the COVID-19 pandemic. This also helped to suspend the student loan payments and establish an interest rate for student loans to 0%. However, to date, the U.S. President Joe Biden’s student loan forgiveness plan has been put on hold until further notice. The U.S. Department of Education has not accepted any more applications during the suspension. The suspension has also been extended until June 30 this year or until whenever the final decision will be made regarding the relief plan, as reported by Ramsey Solutions.

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Decision on Student Loan Forgiveness Plan

According to Ramsey Solutions, Biden had plans to reinstate the relief plan this January 2023. However, numerous legal challenges and court orders have temporarily put these plans on hold. This is why Biden has decided to extend the suspension until everything will be resolved. This means the relief plan will either be approved or shut down completely. If the relief plan gets approved, it will resume its operations 60 days after the decision is made. If there has been no decision made by June 30 this year, the relief plan will also resume 60 days after.

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