• About
  • Advertise
  • Privacy Policy
  • Contact
Tuesday, October 21, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Biden Lengthens Student Loan Repayment Hiatus

Comfort Ampomaaby Comfort Ampomaa
November 23, 2022
Reading Time: 4 mins read
Comfort Ampomaaby Comfort Ampomaa
in USA
0
Biden Lengthens Student Loan Repayment Hiatus

President Joe Biden

President Joe Biden has announced that his administration will extend the pause on federal student loan payments while the White House fights a legal battle in order to save his student loan forgiveness plan.

In a video posted on Twitter, Biden opined, “It isn’t fair to ask tens of millions of borrowers eligible for relief to resume their student debt payments while the courts consider the lawsuit.”

The moratorium which was scheduled to expire on January 1, 2023, is now being extended until 60 days after the lawsuit is resolved. If the lawsuit has not been resolved by June 30, 2023, payments would resume 60 days after that.

RelatedPosts

US, Australia Ink Rare Earth Mineral Deal

Government Shutdown Enters 20th Day, Senate To Hold 11th Vote

Ex-Trump National Security Adviser Indicted Over Classified Information

Biden’s plan guarantees $10,000 in federal student debt forgiveness to those with incomes of less than $125,000, or households that earn less than $250,000. Pell Grant recipients, who normally demonstrate more financial need, are qualified for an additional $10,000 in relief.

Over 26 million people already applied for the relief, with 16 million approved, but the Education Department halted the processing of applications this month. This happened after a federal judge in Texas blocked the plan; claiming that the program usurped Congress’ power to make laws.

Last week, the Justice Department petitioned the Supreme Court to scrutinize the issue and reinstate Biden’s debt cancellation plan. By extending the student loan repayment freeze, the administration claims it is giving the court a chance to resolve the case in its current term.

ADVERTISEMENT

“I’m completely confident my plan is legal,” Biden intimated.

Biden pronounced the decision a day after more than 200 advocacy groups persuaded him to extend the pause, cautioning that commencing payment in January would result in “financial catastrophe” for millions of borrowers.

The White House has argued in court that Americans continue to feel the financial stress of the pandemic. Without Biden’s cancellation plan, the number of people falling behind on student loans could escalate to historic levels.

The greatest risk is for about 18 million borrowers who were told their entire loan balance would be canceled. The Education Department has warned that even if payments restart, those borrowers might think they are faultless and ignore the bills.

Extending The Payment Pause Will Cost Several Billion Dollars

Simultaneously, the White House has warned that extending the payment pause will cost several billion dollars a month in lost revenue. As reported by the General Accountability Office, the moratorium has already cost the government more than $100 billion in lost payments and interest.

The Biden administration did not address the costs in its announcement, but instead cast blame on Republicans challenging the plan.

“Callous efforts to block student debt relief in the courts have caused tremendous financial uncertainty for millions of borrowers who cannot set their family budgets or even plan for the holidays without a clear picture of their student debt obligations.”             

Education Secretary, Miguel Cardona

“It’s just plain wrong,” he added.

Critics such as the Committee for a Responsible Federal Budget have opposed any further extension, stating that it could worsen inflation and raise the risk of economic recession.

However, supporters of Biden’s plan applauded the action, saying it provides a cushion to working-class Americans.

“This extension means that struggling borrowers will be able to keep food on their tables during the holiday season and the coming months as the administration does everything it can to beat back the baseless and backward attacks on working families with student debt.”   

Mike Pierce, Executive Director of the Student Borrower Protection Center.

The legitimacy of broad student debt cancellation has been contested even before Biden became president. Supporters say federal law already gives the Education Department wide flexibility to cancel student loans, while opponents argue that only Congress has the power to cancel debt at that scale.

The Justice Department says the law offers sweeping authority to cancel student debt during a national emergency. Biden has said the relief is needed to help Americans recover from the pandemic.

READ ALSO: NPP Executives Convince MPs To Allow Ofori-Atta Stay In Office

Tags: moratoriumPresident Joe Bidenstudent loansUS education departmentUS Supreme Court
Please login to join discussion
Previous Post

BoG Issues Guidelines On Treatment Of Dormant Electronic Money Accounts, Unclaimed Balances

Next Post

UK Export Finance Commits Up To £4bn To Strengthen UK-Moroccan Trade Ties

Subscription Form

Related Posts

US President, Donald Trump and Australian Prime Minister, Anthony Albanese sign rare earth deal.
USA

US, Australia Ink Rare Earth Mineral Deal

October 20, 2025
Democrats Win Final Seat In US House Of Representatives
USA

Government Shutdown Enters 20th Day, Senate To Hold 11th Vote

October 20, 2025
Ex-Trump National Security Adviser Indicted Over Classified Information
USA

Ex-Trump National Security Adviser Indicted Over Classified Information

October 17, 2025
Trump Rebuffs Putin’s Offer To Aid Israel-Iran Conflict Mediation
USA

Trump To Meet Putin In Hungary For Talks On Ukraine War

October 16, 2025
Democrats Win Final Seat In US House Of Representatives
USA

Government Shutdown Enters 15th Day

October 15, 2025
Charlie Kirk’s Killing Prompts Bipartisan Outrage
USA

Six Visas Revoked Over Social Media Comments About Charlie Kirk’s Death

October 15, 2025
Cabinet Approves Ghana’s First-Ever Marine Protection Area
General News

Cabinet Approves Ghana’s First-Ever Marine Protection Area

by Emmanuel Tibila BoasahOctober 21, 2025
Ghana’s Banking Sector Loses Nearly GH¢100m to Fraud — BoG Report Reveals
Banking

Ghana’s Banking Sector Loses Nearly GH¢100m to Fraud — BoG Report Reveals

by M.COctober 21, 2025
Cedi’s October Surge Stuns Markets as 16% Jump in Two Weeks Sparks Investor Optimism
Economy

Cedi’s October Surge Stuns Markets as 16% Jump in Two Weeks Sparks Investor Optimism

by M.COctober 21, 2025
Global Lithium Market
Extractives/Energy

Atlantic Lithium Uncovers Major Lithium Anomalies in Côte d’Ivoire 

by Prince AgyapongOctober 21, 2025
Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns
Vaultz Business

Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns

by Silas Kafui AssemOctober 21, 2025
Former Vice President Dr Bawumia and former Assin Central MP Kennedy Agyapong, two leading figures of the opposition NPP at it Thank You Tour
General News

NPP Woes Deepen as All Potential Flagbearers Trail Behind NDC Bigwigs – Poll

by evansjrOctober 21, 2025
Cabinet Approves Ghana’s First-Ever Marine Protection Area
Ghana’s Banking Sector Loses Nearly GH¢100m to Fraud — BoG Report Reveals
Cedi’s October Surge Stuns Markets as 16% Jump in Two Weeks Sparks Investor Optimism
Global Lithium Market
Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns
Former Vice President Dr Bawumia and former Assin Central MP Kennedy Agyapong, two leading figures of the opposition NPP at it Thank You Tour

Recent News

Cabinet Approves Ghana’s First-Ever Marine Protection Area

Cabinet Approves Ghana’s First-Ever Marine Protection Area

October 21, 2025
Ghana’s Banking Sector Loses Nearly GH¢100m to Fraud — BoG Report Reveals

Ghana’s Banking Sector Loses Nearly GH¢100m to Fraud — BoG Report Reveals

October 21, 2025
Cedi’s October Surge Stuns Markets as 16% Jump in Two Weeks Sparks Investor Optimism

Cedi’s October Surge Stuns Markets as 16% Jump in Two Weeks Sparks Investor Optimism

October 21, 2025
Global Lithium Market

Atlantic Lithium Uncovers Major Lithium Anomalies in Côte d’Ivoire 

October 21, 2025
Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns

Ghana’s Textile Policy Faces Old Structural Hurdles, IMANI Warns

October 21, 2025
Former Vice President Dr Bawumia and former Assin Central MP Kennedy Agyapong, two leading figures of the opposition NPP at it Thank You Tour

NPP Woes Deepen as All Potential Flagbearers Trail Behind NDC Bigwigs – Poll

October 21, 2025
The Vaultz News

Copyright © 2025 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2025 The Vaultz News. All rights reserved.

Discover the Details behind the story

Get an in-depth analysis of the news from our top editors

Enter your email address