Seeking to work around the currently stalled congressional negotiations for the next coronavirus relief package, President Donald Trump on Saturday issued an executive order to provide deferments to borrowers on student loan repayments and waive interest on student loans through December 31.
While operational and implementation questions remain, the directive would appear to provide relief to millions of borrowers who would otherwise find themselves back in repayment on October 1. Further action on student loans could be taken should congressional negotiations yield a new bout of relief. House Democrats' coronavirus relief package has called for pausing student loan payments and interest accrual through Sept. 30, 2021, while Senate Republicans’ proposal calls for modifying the current student loan repayment system.
Publication Date: 8/10/2020