December 2, 2022

When Will the Student Loan Payment Pause End?


Federal student loan holders had a couple of extra things to be thankful for last week. 

The Biden administration announced yet another extension to the student loan payment pause. Previously set to expire on December 31, 2022, President Biden announced the pause will extend “to no later than June 30, 2023.” 

So, what exactly does the timeline mean, and how will it impact repayment plans? 

The Latest in Biden Forgiveness Lawsuits

President Biden’s plan to cancel up to $20,000 in federal student loans for borrowers has been mired with lawsuits since its announcement.

As the cases have progressed, two federal district courts have blocked the plan. The administration has continued to appeal, and now the case will be brought to the country’s highest legal authority, the Supreme Court.

The Supreme Court will fast-track this case, with a hearing planned for February 2023. Experts predict that the court will reach a verdict on the case sometime in the late spring or summer of 2023.

Due to the nature of the case, the Supreme Court deferred to make a decision on the temporary injunction on the program. That means the lower court’s ruling to pause Biden’s forgiveness will hold until the Supreme Court makes its decision.       

When Will The Payment Pause End?

Since Biden forgiveness is on hold for the foreseeable future, the administration has decided to extend the pause on federal student loan payments. 

However, this pause is different from any of the previous pauses. When student loan payments resume will hinge on the timeline of the court, as well as its verdict. 

There are three different scenarios in which the student loan payment pause will end. The payment pause will end 60 days after:

Biden’s debt cancellation program is implemented

If Biden forgiveness is deemed constitutional and allowed to resume, federal student loan borrowers will be expected to resume their payments 60 days after Biden relief goes through. 

The lawsuits against Biden debt relief are resolved 

If and when the lawsuits against Biden forgiveness are resolved, likely meaning a ruling from the Supreme Court, federal student loan borrowers will have 60 days past the official ruling before they have to start making payments on their loans again. 

June 30, if litigation fails

If neither of the two above scenarios occur before June 30, 2023, student loans payments will resume in 60 days. 

What Does This Mean For My Student Loans?

Unlike the previous pauses, the latest pause is a moving target. It may require borrowers to keep an eye on the news, because if a verdict is reached, or the lawsuits are settled, they’ll have 60 days to figure out how they want to tackle student loan repayment. 

Does keeping track of the latest in student loans make your head spin? That’s where The Chipper Club comes in. Our community makes it simple to stay up to day with the latest in student loans. 

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