President Joe Biden announced on Tuesday that his administration is extending the student loan pause that was implemented at the start of the pandemic.
The pause was scheduled to end on Dec. 31. Biden previously said he would not extend the pause.
However, it appears he had a change of heart after several courts blocked his student loan forgiveness plan.
"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," Biden said.
Biden said the pause would be in effect until no later than June 30, 2023.
The Biden administration filed a petition with the Supreme Court to rule on at last one of the lawsuits. He said the new timeline gives the court enough time to hear the case.
"I'm confident that our student debt relief plan is legal," Biden stated.
The petition with the Supreme Court concerns a lawsuit filed by six Republican-led states. It seeks to overturn an injunction by a federal appeals court in St. Louis
Biden's plan would forgive $10,000 in federal student debt for those with incomes of less than $125,000, or households earning less than $250,000. People who received a Pell Grant would be eligible for $20,000 in relief.
