Those who paid down student loan debt during moratorium getting refund checks
Around 8.8 million borrowers tried to make headway on paying down their student loan debt during the moratorium on payments and interest. The pause on student loan payments was implemented in March 2020 and has been extended several times since.
However, the holiday will be coming to an end soon, expiring 31 December 2022. Millions of borrowers were hoping to take advantage of President Biden’s annouced federal student loan forgiveness program.
The program came to a screeching halt though when some 22 million had already signed up after an injunction was imposed by the courts due to a lawsuit from a handful Republican states. Good news though for those that paid down their debt during the moratorium.
Bloomberg reports that despite the injunction, they will be receiving refunds as part of the covid-19 relief stimulus program.