Explained | What’s the latest on Biden’s U.S. student loan forgiveness?

Mr. Biden said on Tuesday announced new, temporary relief for borrowers that may mean their next loan payment is not due until August 2023

The story so far: U.S. President Joe Biden's plan to forgive federal student loans, first announced in August, has been blocked by two legal challenges, clouding the financial future for millions of American students and graduates.

Mr. Biden said on Tuesday he was confident the plan is legal, and announced new, temporary relief for borrowers that may mean their next loan payment is not due until August 2023.

On November 22, Mr. Biden said he would extend the COVID-19 pandemic-era pause in student loan payments until no later than June 30, 2023. The pause will allow the U.S. Supreme Court to review his administration's requests to lift lower court orders blocking the plan, which affects loans held by the Department of Education.

Payments will resume 60 days after the pause ends, Mr. Biden said.

The Biden administration has asked the Supreme Court to put on hold a November 14 decision by the St. Louis, Missouri-based 8th U.S. Circuit Court of Appeals, which granted an injunction request by Republican-led states Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina. The states are due to respond to the request on Wednesday.

It is also asking a federal appeals court in New Orleans to put on hold a separate November 10 ruling by a Texas judge appointed by Republican former President Donald Trump that declared the debt forgiveness plan unlawful. The administration has said if the 5th U.S. Circuit Court of Appeals does not grant that request, it will ask the Supreme Court to intervene.