As a result of discussions regarding the debt ceiling resolution, House Speaker Kevin McCarthy and President Joe Biden decided that payouts on student loans backed by the federal government will resume in August.
The payouts have resumed after a break of over 3 years, during which interest had been generated since the initial outbreak of the coronavirus pandemic. The debt ceiling bill’s debates have resulted in a fixed deadline for when the suspension of the payout will cease.
In reality, there are 2 dates.
The hold will terminate 60 days after June 30 or, if the U.S. Supreme Court rules on challenges filed over the administration about the loan forgiveness plan, 60 days after that date.
According to the deal reached on the debt ceiling measure, the hold must be removed no later than August 29 — 60 days after June 30 — because it is unclear when the Supreme Court would make its decision.