Trump May Suspend Student Loan Payments Until Further Notice

William Arsn

Updated August 9, 2020.

President Donald Trump will suspend federal student loan payments through December 31, 2020.

Here’s what you need to know.

Student Loans

After Congress failed to reach a stimulus deal Friday, Trump said during a press conference in New Jersey that he plans to issue an executive order on a host of economic issues, including student loans, a payroll tax cut, eviction moratorium and unemployment benefits if Congress fails to act on a stimulus package. On Saturday, Trump issued an executive order, including a memorandum on student loan payment relief. According to Trump’s memorandum, he will grant additional student loan relief and provide a payroll tax cut, enhanced unemployment benefits and an eviction moratorium. Trump, who is seeking re-election, sent the memorandum entitled “Continued Student Loan Payment Relief During the COVID-19 Pandemic” to U.S. Secretary of Education Betsy DeVos. Trump directed DeVos to extend several student loan benefits contained in the Cares Act (the stimulus package Congress passed in March) until December 31, 2020. It’s unclear at this point whether the executive order, which applies to federal student loans, will be expanded to include other federal student loans such as FFELP loans or Perkins Loans not owned by the federal government, which were not included under the Cares Act. The executive order apparently would not include second stimulus checks.

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