Biden Extends Pause on Student Loan Repayment
With President Biden’s student loan forgiveness plan temporarily blocked by a federal appeals court and set to go before the U.S. Supreme Court, the Department of Education announced an extension of the current pause on student loan repayment, interest, and collections until June 30, 2023 or until the litigation is resolved. The pause on federal student loan repayments and accumulating interest first began in March 2020 with passage of the CARES Act to help those facing economic hardship amid the COVID-19 pandemic.
Biden’s student loan forgiveness plan would cancel up to $20,000 of student loan debt for eligible Pell Grant recipients and up to $10,000 of debt for eligible non-Pell Grant borrowers who earn less than $125,000 annually ($250,000 for married couples). The forgiveness plan was blocked by a federal appeals court after six states filed a lawsuit arguing that President Biden lacks the authority to unilaterally forgive student loan debt en masse and that they would be financially harmed by the cancellation. The U.S. Supreme Court will hear oral arguments on the case in February 2023.
Impact on General Dentistry: The AGD is closely following developments related to President Biden’s student loan forgiveness plan and the federal pause on student loan repayment. Student loan debt remains a significant issue for the AGD. Dental students face disproportionately high costs for graduate level education. In 2021, the average indebted dental graduate owed $301,583 in loans.
Biden’s student loan forgiveness plan would cancel up to $20,000 of student loan debt for eligible Pell Grant recipients and up to $10,000 of debt for eligible non-Pell Grant borrowers who earn less than $125,000 annually ($250,000 for married couples). The forgiveness plan was blocked by a federal appeals court after six states filed a lawsuit arguing that President Biden lacks the authority to unilaterally forgive student loan debt en masse and that they would be financially harmed by the cancellation. The U.S. Supreme Court will hear oral arguments on the case in February 2023.
Impact on General Dentistry: The AGD is closely following developments related to President Biden’s student loan forgiveness plan and the federal pause on student loan repayment. Student loan debt remains a significant issue for the AGD. Dental students face disproportionately high costs for graduate level education. In 2021, the average indebted dental graduate owed $301,583 in loans.