July 17, 2020

Suspend Student Loan Payments Through 2020

Suspend Student Loan Payments Through 2020


Student loan payments have been suspended temporarily due to the coronavirus pandemic, but that will soon end. A proposal from Congressman Steve Stivers (R-OH) would extend the student loan payment suspension through the end of the year.

The CARES Act provided a suspension of federal student loan payments and interest accrual for about six months, but it expires on September 30, 2020. Many are pushing for it to continue as the economy has still not recovered and the coronavirus pandemic is only getting worse in some states. 

The Economic and Student Loan Debt Relief Act of 2020 proposed by Stivers would extend the student loan payment suspension through December 31, 2020. That would give student loan borrowers another three-month hiatus from their student loan payments, interest-free. 

Others argue this isn’t enough. Senator Elizabeth Warren (D-MA) has been pushing for at least $10,000 in student loan forgiveness since before the CARES Act passed this spring and continues to push for it. The House passed a bill that provided debt forgiveness for distressed borrowers but extended the student loan payment suspension for a whole year.

However, Republicans have shown little interest in student loan forgiveness. This bill is one of the few times Republicans have indicated what they might do around student loans in the next stimulus package.

While there is still some time before the expiration happens, Americans will likely know in the next couple of weeks if the student loan suspension will continue. The enhanced unemployment benefits provided under the CARES Act expire at the end of this month, pushing Congress to act sooner. 

Given lawmakers’ unwillingness to pass more legislation they will likely address this issue in that bill. Senate Majority Leader Mitch McConnell has said there would only be one more bill passed. He is expected to release his proposal soon, likely next week.


Related Readings:

The Economic Stimulus Of Student Debt Cancellation

Pelosi Proposes $1,200 Stimulus Checks, $10,000 Student Loan Forgiveness, And Money For Colleges

What The Coronavirus Stimulus Means For Your Student Loans


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