Biden extends student loan repayment pause as debt cancellation placed on hold amid legal challenge

President Joe Biden announced on Tuesday the extension of the pause on federal student loan payments as the courts determine the legality of his student loan cancellation plan.

The Twitter caption of the video posted on Biden's official government account says, "I'm confident that our student debt relief plan is legal. But it's on hold because Republican officials want to block it. That's why [Education Secretary Miguel Cardona] is extending the payment pause to no later than June 30, 2023, giving the Supreme Court time to hear the case in its current term."

In the video, Biden said, "Payments will resume 60 days after the pause ends."

The pause on the repayments was extended to Jan. 1, 2023, before Biden's cancellation plan was placed on hold by legal challenges.

Biden's plan is for federal student loans up to $10,000 to be cancelled for those making less than $125,000 annually. Those who received low-income Pell Grants are eligible for up to $20,000 in federal student loan cancellation.