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.
Further Reading
Republican Stimulus Bill Would Help Airlines, Exclude Student Loans And Direct Cash Payments
Trump’s Extended Student Loan Relief Will Count Towards Loan Forgiveness, Says Dept. Of Education
Student Loan Stimulus: Multi-State Coalition Tells DeVos To Take Action As Compromise Hopes Dim
Second Student Loan Stimulus: Five Possible Scenarios
GOP To Include $1,200 Checks, But No New Student Loan Relief, In Stimulus Bill
Democrats: Freeze All Student Loan Payments, Interest For 12 Months
Over 100 Civil Rights Groups Tell Congress: Cancel Student Debt In Next Stimulus Bill
Rep. Ayanna Pressley: Cancel Student Loan Debt Now
GOP Concerns Over Costs Could Limit Student Loan Relief In Next Stimulus
