Biden extends the student-loan payment pause for another 6 months at most as his debt relief remains blocked in court

• Biden just announced an extension of the student-loan payment pause no later than June 30, 2023.
• It comes as the debt relief remains blocked in federal courts.

President Joe Biden just extended the student-loan payment pause up to six more months as his debt relief plan remains blocked in court.

On Tuesday, Biden announced that the Education Department is extending the pause on payments through June 30, or 60 days after the lawsuits seeking to block the relief are resolved.

On Friday, Biden's Justice Department asked the Supreme Court to revive it's plan to forgive up to $20,000 in student debt for federal borrowers in response to a ruling from the 8th Circuit Court of Appeals last week that stated the pause on relief should remain in effect indefinitely.

"It isn't fair that tens of millions of borrowers that are eligible for relief to resume their student debt payments while the courts consider the lawsuit," Biden said in a statement. "For that reason, the Secretary of Education is extending the pause on student loan payments while we seek relief from the court, but no later than June 30, 2023, which would give the Supreme Court an opportunity to hear the case in its current term. Payments will resume 60 days after the pause ends."

—President Biden (@POTUS) November 22, 2022

Education Secretary Miguel Cardona also wrote on Twitter on Tuesday announcing the extension that "callous efforts to block student debt relief in the courts have caused tremendous financial uncertainty for millions of borrowers who cannot set family budgets or even plan for the holidays without a clear picture of their student debt obligations."

According to the press release, student-loan payments will resume 60 days after the administration is permitted to implement the program. "If the program has not been implemented and the litigation has not been resolved by June 30, 2023 – payments will resume 60 days after that," the release said.

This extension answered calls from Democratic lawmakers and advocates who have been pushing Biden to extend the pause on payments until borrowers get the relief they were promised. NAACP President Derrick Johnson said in a Tuesday statement that the "impact this extension will have in the lives of those who have been targeted by predatory student loans cannot be overstated."

"To the hypocritical, greedy, far-right individuals, organizations and elected officials attacking President Biden's plan, which the NAACP fought tirelessly to accomplish: you will not win," Johnson added. "You have shown us where you stand, and we'll ensure you get voted out when your turn comes."

And while Republicans on the House education committee called the extension "sheer insanity," referring its cost to taxpayers on Twitter, Democrats lauded the additional relief.

"This extension is essential given the cruel efforts by Republican officials and far-right judges to halt this critical relief in the courts, despite President Biden's clear legal authority and decisive action to cancel student debt," Massachusetts Rep. Ayanna Pressley said in a statement. "Student debt cancellation will change and save lives, and no eligible borrower should have to pay a dime on their student loans until they receive the up to $20,000 in student debt cancellation they were promised by President Biden."

At this point, it's unclear whether the Supreme Court will decide to revive the debt relief or dismiss the administration's appeal. Along with the 8th Circuit, a federal judge in Texas also blocked the relief and ruled it illegal — a decision Biden's Justice Department appealed, as well. This leaves the 26 million student-loan borrowers who applied for the relief in limbo, and Cardona began sending notices to borrowers over the weekend that "we will discharge your approved debt if and when we prevail in court."