Trump Suspends Student Loan Payments Through December 31

Trump Suspends Student Loan Payments Through December 31

President Donald Trump will suspend your federal student loan payments through December 31, 2020. Here’s what you need to know. Trump signed an executive order today that will grant additional student loan relief and provide a payroll tax cut, enhanced unemployment benefits and an eviction moratorium. Trump sent a memorandum today entitled “Continued Student Loan Payment Relief During the COVID-19 Pandemic” to U.S. Secretary of Education Betsy DeVos regarding student loans in the wake of the Covid-19 pandemic. Trump ordered DeVos to extend the student loan benefits contained in the Cares Act until December 31, 2020. Congress passed the Cares Act, which is the $2.2 trillion stimulus bill that Congress, in March: Among other benefits, the Cares Act: • set interest rates at 0%, so interest will not accrue on your federal student loans; • halted collection of federal student loan debt; and, among other benefits, • “counted” non-payment of federal student loan debt toward the 120 required monthly payments for public service loan forgiveness. The student loan relief included in the Cares Act followed Trump’s executive action earlier this year that provided similar student loan relief for 60 days prior to passage of the Cares Act. Without today’s executive order, this student loan relief was slated to expire on September 30, 2020. Trump wrote that student loan borrowers can continue to make federal student loan payments in the normal course. “Currently, many Americans remain unemployed due to the COVID-19 pandemic, and many more have accepted lower wages and reduced hours while States ...
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