The tentative deal struck by the White House and House Republicans to raise the debt limit would not jettison President Joe Biden’s plan to provide one-time relief for qualifying student loan borrowers, a source familiar with the negotiations said.
The deal would, however, require borrowers to pay back their student loans again, according to a fact sheet circulated by the House GOP.
Repayments on federal student loans, which have been paused since the Covid-19 pandemic began in March 2020, would commence at the end of the summer, as the Biden administration has already announced, another source familiar with the debt ceiling talks said.
Biden’s student loan relief proposal is currently before the US Supreme Court, which is expected to rule on it in coming weeks. The court heard oral arguments in February, when several conservative justices appeared skeptical of the government’s authority to discharge millions of dollars in federally held loans.
If the student loan forgiveness program is allowed to move forward, individual borrowers who made less than $125,000 in either 2020 or 2021 and married couples or heads of households who made less than $250,000 a year could see up to $10,000 of their federal student loan debt forgiven.
If a qualifying borrower also received a federal Pell grant while enrolled in college, the individual is eligible for up to $20,000 of debt forgiveness.
CNN’s Katie Lobosco contributed to this report
