Earlier in August, President Trump signed an executive memorandum to extend pandemic-related student loan relief, which was previously scheduled to expire on September 30, 2020. The President’s executive action extends this student loan relief to December 31, 2020.
Here’s what you need to know:
- All payments, interest, and collections on government-held federal student loans will continue to be suspended through December 31, 2020.
- The relief only applies to government-held student loans — not commercially-held FFEL loans, Perkins loans, or private loans.
- The Department of Education recently confirmed that the months of suspended student loan payments will continue to count towards rehabilitation and loan forgiveness programs, including Public Service Loan Forgiveness, for those who are otherwise meeting all eligibility criteria.
House Democrats passed legislation in May extending the CARES Act’s student loan relief for an additional 12 months, to September 30, 2021, but Senate Republicans opposed that measure. Congressional Republicans are currently preparing a new stimulus proposal that includes no further student loan relief.