WASHINGTON — The Biden administration is considering extending its pause on student loan repayments, now set to resume Jan. 1, in response to legal challenges to its student-debt forgiveness program, according to people familiar with the internal discussions.
White House aides, Democratic lawmakers and advocates have been discussing ways to give borrowers a measure of financial relief, as the lawsuits work their way through the court system, people familiar with the talks said.
A federal appeals court on Monday blocked the administration from carrying out President Joe Biden’s plan to cancel as much as $20,000 in debt for some borrowers. The decision followed a ruling last week from a federal judge in Texas finding the plan unlawful. The Department of Education has stopped accepting applications for loan forgiveness, thrusting millions of Americans into financial limbo.
