After weeks of doomsday warnings and hostage-taking by chaos-loving Republicans, it appears as though an agreement to raise the debt ceiling will finally make its way to President Biden's desk. Who won? I guess the answer depends on whom you ask, as both sides seem to be taking a victory lap. The White House reportedly believes that voters will remember that it was Biden who got things done. Republicans are confident that they secured "huge wins" from the deal. But one thing millions of Americans may want to know is what the deal could mean for student loan payments. Because if the deal passes the Senate in its current form, one thing is clear: student loan repayments are coming back. As my colleague Arianna Coghill noted today: Repayments and interest accrual will kick in at the end of August. That's roughly the same time the Biden administration had previously said that the federal pause would finally end after more than three years, eight extensions, and two presidencies. But those hoping for another last-minute extension this time around are out of luck; the debt ceiling agreement specifically blocks President Biden from issuing one without congressional approval.
Biden's plan to forgive $20,000 worth of debt for Pell Grant recipients and up to $10,000 for borrowers who earn less than $125,000 a year remains in the hands of the Supreme Court. That ruling could come any day now. —Inae Oh |
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