May 29, 2023
The debt ceiling deal finalized between President Joe Biden and House Speaker Kevin McCarthy on Sunday would reinstate student loan payments and the accrual of interest in late August.
“The pause is gone within 60 days of this being signed,” McCarthy told Fox News anchor Shannon Bream. “So that is another victory because that brings in $5 billion each month to the American public.”
The Biden-McCarthy deal would suspend the debt limit until January 2025. The plan now heads to Congress for a vote.
‘TWO VERY DIFFERENT PLACES’:As Supreme Court gears up to rule on student loan cases, Americans are split on debt forgiveness
Are student loans still deferred?
Yes. Student payments and interest have been on pause since the onset of the pandemic, a moratorium first adopted and extended under former President Donald Trump and then extended again under Biden.
But that won’t be the case for long. The Biden administration, whose mass student debt forgiveness plan is currently held up in the Supreme Court, has faced mounting pressure to lift the moratorium.