2022 End of Year Student Loan Update

November 28, 2022

As many of you are aware, the Biden-Harris administration has extended the pause on student loan repayment until June 30, 2023. However, there are a few subtleties to this extension that you should be aware of.

The payment pause is tied to the outcome of current litigation in federal courts concerning the administration’s student loan forgiveness program. There were two lawsuits filed against the debt forgiveness program. In one of those suits, a federal judge in Texas has blocked the execution of student loan forgiveness. 

The administration has filed an appeal to that ruling, and the outcome of this appeal will affect both the debt forgiveness program and the resumption of student loan repayment.  

Should the administration’s appeal succeed:

  • Borrowers who apply and are approved will receive $10,000 (up to $20,000 for Federal Pell Grant recipients) of loan forgiveness, AND
  • Student loan repayments will resume 60 days later


Should the administration’s appeal fail:

  • Student loan repayment will remain paused until June 30, 2023, AND
  • Repayment will begin 60 days thereafter (e.g. on or around August 30, 2023)



The Bottom Line

To be safe, you should be prepared to begin repayment of your loans during the first quarter of 2023, but they may not resume until August 2023.

If history is any guide, the student loan landscape will continue to change. As always, we will continue to closely follow the situation in order to best serve our clients’ needs. If you have any questions or concerns, we are always here for you.


Best wishes to you and your family,

Trail Ridge Wealth Management