Biden’s Pledge to Eliminate Student Loan Debt Remains in Question; Loans Begin Accruing Interest in September

After three years, the national freeze on federal student loan payments end this October.

Conservatives halted President Joe Biden's student loan cancellation plan last Fall.

“Student Loan Debt Relief Is Blocked. Courts have issued orders blocking our student debt relief program. As a result, at this time, we are not accepting applications. We are seeking to overturn those orders.” ~ studentaid.gov NOTICE

About 9 million Americans received emails in November that their application for Biden's student debt relief program had been approved, yet these statements were erroneous and the White House sent emails to let people know the program was (and is) on hold.

In February, the Supreme Court heard arguments to challenge Biden's student loan cancellation plan.

After a Republican measure overturned the plan in May, Biden vetoed legislation.

"It is a shame for working families across the country that lawmakers continue to pursue this unprecedented attempt to deny critical relief to millions of their own constituents, even as several of these same lawmakers have had tens of thousands of dollars of their own business loans forgiven by the Federal Government," said Biden in his veto message.

As far as the veto, the Supreme Court could still nix Biden's plan altogether. A decision is expected this summer.

Yet, if enacted, the plan would forgive up to $20,000 in federal student loan debt for borrowers making less than $125,000 a year.

The White House reported that 26 million people applied for relief, with 16 million processed and ready to roll out.

Federal student loans will begin accruing interest September 1, 2023. Borrowers will need to begin making payments in October; not making payments could impact credit score and jeopardize future aid and benefits.