A deal that averts default on the national debt failed to undo President Joe Biden’s student loan forgiveness plan, to the disappointment of some House Republicans.
But Biden did agree, after weeks of negotiations with House Speaker Kevin McCarthy , to reinstate student loan payments for millions of borrowers who have avoided the obligation to make payments on their loans since the pandemic.Starting in August, the pause on student loan repayments would end. The deal stipulates that repayments are to begin 60 days after the signing of the bill, and the Treasury Department has said Congress must lift the debt ceiling the first week of June to escape default.
However, Biden’s plan to forgive up to $20,000 in student debt for many people remains intact under the deal. Supreme Court justices heard arguments in that case earlier this year and are expected to issue a ruling on the legality of the program by the end of the summer.
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