The moratorium has been extended eight times under both the Trump and Biden administrations since March 2020, when it was put in place to help people struggling due to the COVID-19 pandemic.
It could be a pivotal week for millions of Americans waiting for word on President Biden's student loan forgiveness plan.
The lawsuit alleges that the pause harms nonprofit employers, like the Mackinac Center for Public Policy, that normally use a federal debt relief program for nonprofit workers to help recruit employees. The pause, they argue, reduces the incentive the federal program, known as Public Service Loan Forgiveness, provides borrowers to work for a nonprofit.
The Department of Education has maintained that the pause, as well as a proposed one-time debt cancellation plan, are legal. The administration has now tied the payment restart date to the litigation over the forgiveness program, which was heard by the US Supreme Court at the end of February.
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