Federal court asked to restart student loan payments put on hold for COVID-19

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When the pandemic hit the U.S. in March of 2020, the Trump administration paused student loan payments for six months.

In a lawsuit filed last month, Mackinac Center for Public Policy asked a federal court to stop the Department of Education’s ongoing pause of student loan payments. The group this week asked for an injunction to lift the pause while the litigation proceeds.

The federal government has repeatedly extended the pause, citing the economic hardships of borrowers. The Supreme Court recently heard arguments in a case challenging President Biden’s plan to forgive a certain amount of debt per student loan borrower, which was based on the economic hardship caused by COVID-19.

 

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