Wednesday, September 17, 2025
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

Opposition grows to ending student loan relief

by Euro Times
June 1, 2023
in Markets
Reading Time: 3 mins read
A A
0
Home Markets
Share on FacebookShare on Twitter


House Speaker Kevin McCarthy, R-Calif., arrives at the U.S. Capitol on May 31, 2023.

Sarah Silbiger | Bloomberg | Getty Images

Borrowers, advocates and progressives don’t want to see the payment pause on student loans come to an end.

But that is a part of the debt-ceiling deal, which could be voted on and approved this week. A provision would officially conclude the stay on the bills by September.

Advocates warn that ending the relief could trigger devastating financial consequences for millions of Americans, especially if the Supreme Court blocks President Joe Biden’s student loan forgiveness plan. The justices are likely to strike down the policy, experts say, given their conservative majority. A decision is expected in June or July.

More from Personal Finance:
Parents paying for college ‘is the norm’
4 strategies to avoid taking on too much student debt
These moves can help you save big on college costs

“This deal takes away the White House’s ability to extend the current payment pause if the Supreme Court kills the relief, making it more likely 40 million people will have to repay loans that the president promised were canceled,” said Astra Taylor, co-founder of the Debt Collective, a union of debtors.

Supporters of terminating the pause say the pandemic has mostly resolved, and that keeping tens of millions of Americans in limbo about their debt obligations could pose risks for both consumers and lenders.

Student debt payment pause is a ‘durably popular’ policy

Since March 2020, the U.S. Department of Education has allowed most people with federal student loans not to make payments on their debt without interest accruing. The bulk of borrowers took advantage of the opportunity.

“The pause on student loan payments remains one of the most durably popular pieces of economic policy because the American people recognize what Washington has long struggled to understand: The student loan system is broken,” said Mike Pierce, executive director of the Student Borrower Protection Center.

Roughly 60% of voters want the pause on student loan bills to be extended if Biden’s sweeping forgiveness plan is blocked by the U.S. Supreme Court, a new poll finds.

The Biden administration has warned that resuming student loan payments without being able to carry out its debt forgiveness plan could trigger a historic spike in defaults and delinquencies because of the economic troubles wrought by the pandemic and borrower confusion over what they owe.

In exchange for voting to raise the nation’s debt ceiling, Republicans had demanded large cuts to federal spending.

As part of negotiations, they also sought to repeal Biden’s executive action granting student loan forgiveness. But the Biden administration refused to agree to that, and the ongoing legal battle over the plan made any legislation potentially moot.

Under deal, pause will ‘cease to be effective’

The pause on federal student loan payments will “cease to be effective” and borrowers will be required to resume paying their bills 60 days after June 30, according to the legislative text of the proposed agreement to raise the debt ceiling. Borrowers’ first due date will likely be in September, experts said.

This deal takes away the White House’s ability to extend the current payment pause if the Supreme Court kills the relief.

Astra Taylor

co-founder of the Debt Collective

As part of the deal, the U.S. Department of Education would also be restricted in its ability to extend this particular relief again, with another prolongment likely only possible from Congress.

Rep. Ayanna Pressley, D-Mass., filed an amendment Tuesday that would strike the provision ending the pause, but her proposed amendment was not included in the final bill.

“Republicans continue to play games with our economy, with disregard for our most vulnerable families,” Pressley said in a statement.

White House spokesman Abdullah Hasan defended the president’s negotiations on behalf of borrowers, pointing out that the administration had planned to end the pause this summer anyway.

“This agreement makes no changes to that plan,” Hasan said.

Correction: Rep. Ayanna Pressley, D-Mass., filed an amendment Tuesday that would strike the debt ceiling deal provision ending the pause on student loan payments. An earlier version misstated the day.

This is a developing story. Please check back for updates.



Source link

Tags: growsloanoppositionreliefStudent
Previous Post

Covering the 2024 Presidential Election

Next Post

Nordstrom posts surprise profit as inventory woes ease By Reuters

Related Posts

Here’s what that means for you

Here’s what that means for you

by Jessica Dickler
September 17, 2025
0

The Federal Reserve introduced Wednesday it'll decrease its benchmark price by 1 / 4 level, paving the way in which for reduction...

China keeps tight grip on rare earths, costing at least one company ‘millions of euros’

China keeps tight grip on rare earths, costing at least one company ‘millions of euros’

by Evelyn Cheng
September 17, 2025
0

Mineral explorers hoping to satisfy the rising demand for uncommon earths are vying for a slice of practically $1 billion...

Webtoon shares jump more than 35% on digital comics Disney deal

Webtoon shares jump more than 35% on digital comics Disney deal

by Alex Harring
September 16, 2025
0

Webtoon Leisure Inc. signage in the course of the preliminary public providing occasion outdoors the Nasdaq MarketSite in New York,...

QELNIX: A Tech Company Transforming Urban Power Access Across Southeast Asia

QELNIX: A Tech Company Transforming Urban Power Access Across Southeast Asia

by Alan Rappeport
September 16, 2025
0

QELNIX is a technology company based in Kuala Lumpur, Malaysia, dedicated to reshaping how power is accessed, shared, and monetized...

Earnings Summary: A snapshot of Dave & Buster’s (PLAY) Q2 2025 report

Earnings Summary: A snapshot of Dave & Buster’s (PLAY) Q2 2025 report

by Staff Correspondent
September 17, 2025
0

Dave & Buster’s Leisure, Inc. (NASDAQ: PLAY), which operates a sequence of informal eating and leisure services, on Monday reported...

Is Your Identity the Next Trillion Dollar Asset?

Is Your Identity the Next Trillion Dollar Asset?

by Ian King
September 16, 2025
0

Sam Altman has already modified the world as soon as. As CEO of OpenAI, he kicked off the synthetic intelligence...

Next Post
Nordstrom posts surprise profit as inventory woes ease By Reuters

Nordstrom posts surprise profit as inventory woes ease By Reuters

AI, JWN, CRM, CRWD, CHWY

AI, JWN, CRM, CRWD, CHWY

Indian celebrities with UAE Golden Visa: Full list and why they’re choosing the Emirates | World News

Indian celebrities with UAE Golden Visa: Full list and why they’re choosing the Emirates | World News

September 17, 2025
Tariffs Pushing Up Prices, But Wider Impact Unclear, Says Powell After Fed Rate Cut

Tariffs Pushing Up Prices, But Wider Impact Unclear, Says Powell After Fed Rate Cut

September 17, 2025
House committee asks Discord, Valve, Twitch and Reddit to testify on online radicalization

House committee asks Discord, Valve, Twitch and Reddit to testify on online radicalization

September 17, 2025
Here’s what that means for you

Here’s what that means for you

September 17, 2025
UN armored vehicle crashes in Central African Republic, killing 5 police officers

UN armored vehicle crashes in Central African Republic, killing 5 police officers

September 17, 2025
9 Balance Exercises That Can Boost Strength and Prevent Falls

9 Balance Exercises That Can Boost Strength and Prevent Falls

September 17, 2025
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

Indian celebrities with UAE Golden Visa: Full list and why they’re choosing the Emirates | World News

Tariffs Pushing Up Prices, But Wider Impact Unclear, Says Powell After Fed Rate Cut

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In