Amid a high-stakes rush to pass legislation raising the federal borrowing limit, the focus turns to a significant facet of the deal, student loan relief. In a pact struck between President Biden and House Speaker Kevin McCarthy, they plan to waive up to $20,000 in debt for nearly all borrowers facing an uncertain future.
The current state of play sees the pause of student loan payments repeatedly extended by Biden, drawing to a close as part of this deal. Those with federal student loans should brace for repayments to restart at the end of August 2023.
Meanwhile, Republicans have been vocal in opposing the loan payment freeze. The Supreme Court, leaning six-three towards conservatives, is currently pondering the legality of Biden’s loan relief plan with several justices expressing doubt. A verdict is anticipated by the end of June.
Will Congress give the green light to the spending bill and can sweeping student loan relief survive judicial scrutiny? America waits with bated breath.