Joe Biden, US President, and Kevin McCarthy, House Speaker, finalised the Debt Ceiling Deal to restart education loan repayment. This deal would put a temporary hold on the student debt limit until January 2025. Moreover, the deal aims to put a hold on levying of Interest up till the fall.
The aforementioned deal is now headed for a vote from Congress. The US Congress will discuss, debate, and scrutinize the law and then sign it. After proper discussions, the lawmakers will sign the deal on June 5, 2023.
This deal aims to avoid a federal default and limit government expenditures. Furthermore, the bill will prevent the upheaval of the global economy.
Important Clauses of Debt Ceiling Deal
Here are the important clauses of the Debt Ceiling Deal:
- It suspends the student debt limit for two years i.e. up to January 2025. However, students have to start repaying their loans from August 2023.
- Furthermore, the bill also limits the accrual of student loan interest for two years i.e. upto January 2025
- Further, the deal also limits US government expenditure for additional two years i.e. upto January 2025
- Also, the legislation includes funding medical care for veterans
- Additionally, the deal will streamline energy projects in the United States of America. It brings changes to the National Environment Policy Act and provides additional importance to the Mountain Valley Pipeline project.
- Moreover, the deal also extends work eligibility for the Supplemental Nutrition Assistance Programme. As per the amendments, the maximum age limit for work requirements of this programme has changed from 49 to 54.
- Other beneficiaries include homeless people and children who are ageing out of the foster care system.
Stay in tune with Fly Finance News Desk to explore the latest updates on study abroad education loans.
