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P:resident Joe Biden’s plan to cancel Student loans A section of the American student population faced intense opposition. The whole plan is in place as they go through the legal challenges that were actually expected. Federal moratorium student loan payments extended once more, including interest. These payments were previously scheduled to resume on January 1, but the president has already publicly announced that the pause is being extended to January 30, 2023.

This submission will offer the Supreme Court a specific time to hear the case in detail within that period. Biden wanted to find out what’s really going on, the Republican opposition are the ones challenging these student loan forgiveness programs. President Biden said. “It’s not fair for tens of millions of borrowers who are eligible for aid to have to resume making student loan payments while the courts hear the lawsuit.” This is definitely a setback, but insignificant, according to the president himself.

Who does this student loan forgiveness program help?

According to information released by the White House, this Student Loan Forgiveness program targeted more than 45 million Americans who took out a total of $1.6 trillion in student loans. The nonpartisan Congressional Budget Office estimated that it would cost $400 billion over 30 years. Student loan payments have been on hold since May 2020 and were supposed to resume in September of that year. However, the moratorium was extended three more times by former President Donald Trump and four more times by Biden.

According to reports, these student loan payments will resume 60 days after the legal issues are resolved. If no agreement is reached by June 30, these payments will still resume 30 days from now, which is August 29, 2023. Discontinued types of student loans are Direct Federal Student Loans, Federal Family Education Loan Program, Federal Perkins Loans. , outstanding FFEL loans and outstanding health education assistance loans.

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