WASHINGTON, D.C. – In response to the Biden Administration’s extension of the pause on federal student loan payments pending resolution of the lawsuits against cancellation, Alpha Taylor, staff attorney at the National Consumer Law Center, issued the following statement:
“We applaud the Biden Administration for taking this critical step to protect student borrowers as it rightfully defends the legality of the one-time debt relief program. The lawsuits against cancellation have prevented critical debt relief for millions of Americans heavily burdened by student debt. Over 26 million Americans have already applied or have been told they are eligible for student debt cancellation, and they shouldn’t have to suffer financially or live in uncertainty as these cases make their way through the courts.
“By extending the payment pause, the Administration ensures that borrowers will not make payments on loans that will be forgiven if the courts uphold the legality of the debt relief.
“We are hopeful that the U.S. Supreme Court will reverse the lower courts’ decisions and allow the Administration to implement its debt relief program. Debt relief will provide transformational relief to tens of millions of low-income families and people of color who have borne the brunt of the nation’s student debt crisis and are struggling to recover from the economic disruption caused by the COVID-19 pandemic.”