Student-loan borrowers are about to be thrown back into repayment, and the economy will suffer — especially if Biden’s debt cancellation is struck down

Insider

Ayelet Sheffey
June 4, 2023
Education Secretary Miguel Cardona has confirmed student-loan payments will resume this year.
The resumption risks jeopardizing the post-pandemic economic recovery and straining consumers’ wallets.
The impacts could worsen if the Supreme Court strikes down Biden’s broad student-debt relief.
Student-loan payments are resuming this year. It’s likely going to hurt not just borrowers, but the entire US economy.
In March 2020, former President Donald Trump first implemented the student-loan payment pause to give borrowers financial relief during the pandemic. Trump and President Joe Biden since extended it multiple times — Biden in November most recently extended the relief through 60 days after June 30, or 60 days after the Supreme Court issues a final decision on the legality of the president’ plan to cancel up to $20,000 in student debt for federal borrowers, whichever happens first.
And the most recent extension is very likely to be the final one. Education Secretary Miguel Cardona told lawmakers in early May that “we’re going to resume payments for 60 days after, but no later than June 30. We’re going to begin that process.”

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