August 7, 2020

Trump May Suspend Student Loan Payments Until Further Notice

Trump May Suspend Student Loan Payments Until Further Notice

This story is developing.

President Donald Trump will suspend federal student loan payments until further notice if Congress doesn’t reach agreement on a final stimulus package.

Here’s what you need to know.

Student Loans

After Congress failed to reach a stimulus deal today, Trump said tonight 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. While the timing is uncertain, Trump says that his executive order, among other things, would “defer student loan payments and defer student loan interest until further notice.” While details are not available, this possible executive order likely will apply to federal student loans only such as Direct Loans that are covered under the Cares Act, which was the $2.2 trillion stimulus package that Congress passed in March. Trump said that lawyers are currently drafting an executive order and he could sign the order as soon as this week. It’s unclear at this point whether the executive order will be expanded to include other federal student loans such as FFELP loans or Perkins Loans, which were not included under the Cares Act. The executive order apparently would not include second stimulus checks.

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