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The White House is providing a new roadmap to the restarting of federal student loan repayments and interest accrual now that the administration’s debt cancellation program is stalled by a pair of legal challenges.

Payments were slated to resume on Jan. 1, 2023.  The Department of Education (ED) on Tuesday said it will instead offer another short-term extension that ties the resumption of loan repayment to a resolution of two ongoing legal challenges, which have halted the administration from implementing the debt cancellation program. The first prevented the administration from carrying out the relief and is currently before the Supreme Court, while the second is making its way through the appeals process and resulted in the department removing the debt relief application from its website. “Payments will resume 60 days after the Department is permitted to implement the program or the litigation is resolved, which will give the Supreme Court an opportunity to resolve the case during its current Term,” ED’s notice reads. “If the program has not been implemented and the litigation has not been resolved by June 30, 2023 – payments will resume 60 days after that.”

Read the entire article from the National Association of Student Financial Aid Administrators located here:

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