The White House announced on Tuesday that Biden will again extend the pause on federal student loan payments. The pause has been extended eight times since March 2020 after the pandemic affected lenders' ability to pay.

This payment freeze has been extended due to the litany of lawsuits plaguing Biden's student loan forgiveness program. A U.S. Court of Appeals injunction in response to a lawsuit filed by six states has blocked the Biden administration from moving forward with the program.

The plan forgives up to $20,000 in student loan debt for Pell Grant recipients and up to $10,000 for individuals whose annual income is below $125,000. Sixteen million borrowers have already applied for loan forgiveness and the Biden administration estimates the program could cancel debt for over 40 million people.

Here are some quick facts.

  • Payments were set to resume on Jan. 1.
  • According to the Education Department, which owns and manages the government's student loan debt, the payment pause will stay in effect until 60 after the litigation cases against the plan are resolved. If the cases have not been resolved by June 30, payments will resume 60 days after that.
  • A letter went out to borrowers on Tuesday morning letting them know they are approved for debt relief. "Your application is complete and approved, and we will discharge your approved debt if and when we prevail in court," Secretary of Education Miguel Cardona said in the letter.

"I'm completely confident my plan is legal. But it isn't fair to ask tens of millions of borrowers eligible for relief to resume their student debt payments while the courts consider the lawsuit," said Biden in a video posted to Twitter Tuesday.

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