EDITORS' PICK|Aug 6, 2020,02:57pm EDT

Trump: I’m Preparing An Executive Order On Student Loan Relief

Adam S. Minsky, Esq.Senior Contributor

Personal Finance

I’m an attorney focused on helping student loan borrowers.

Trump student l oans

WASHINGTON, DC - AUGUST 06: President Donald Trump[+]

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President Trump indicated on Thursday that his administration is taking steps through executive action to address expiring student loan relief for millions of Americans.

“Upon departing the Oval Office for Ohio, I’ve notified my staff to continue working on an Executive Order with respect to Payroll Tax Cut, Eviction Protections, Unemployment Extensions, and Student Loan Repayment Options,” the President tweeted. No further details were provided, and it was not immediately clear what the President meant by “student loan repayment options.”

The President’s statement comes as Congress has been unable to reach a compromise on extending student loan relief and other economic assistance programs that are expiring. Congress had suspended all payments, interest, and collections on government-held federal student loans for six months under the CARES Act, which was enacted in April. That student loan relief expires at the end of September.

House Democrats passed legislation extending that relief for an additional 12 months, but Senate Republicans have opposed that measure. Instead, Senate GOP leaders just unveiled a new stimulus package that includes no additional extension of existing student loan relief, but would create a new repayment plan that mirrors income-driven repayment options that are already available to borrowers.

With Congress unable to reach a compromise so far, the Trump administration could act unilaterally and enact a new executive order extending the existing student loan payment suspension and interest freeze. The Trump administration previously exercised this authority in March to temporarily suspend student loan payments and interest at the beginning of the pandemic. With the CARES Act’s provisions expiring on September 30, millions of student loan borrowers will get billed merely days before the November elections. That is a potentially powerful incentive for lawmakers — and the President — to act.

The Trump administration already has a blueprint for such an extension. The HEROES Act, which the House passed in May, extends the existing student loan protections for 12 more months, and would expand those protections to include commercially-owned FFEL-program loans and Perkins loans. In addition, a Republican congressman introduced legislation extending student loan relief through December 31, 2020. While this three-month extension is far shorter than the 12-months suggested by House Democrats, it would get the administration through the election, and effectively punt any further relief to the next Congress.

Further Reading

Student Loan Stimulus: Multi-State Coalition Tells DeVos To Take Action As Compromise Hopes Dim

Second Student Loan Stimulus: Five Possible Scenarios

Here’s what to do if Congress doesn’t extend student loan relief.

Trump: “We’re Looking” At Extending Student Loan Payment Suspension

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

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Adam S. Minsky, Esq.

I’m an attorney with a unique practice devoted entirely to helping student loan borrowers. I provide counsel, legal assistance, and direct advocacy for borrowers on a…Read More

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(http://www.autoadmit.com/thread.php?thread_id=4598808&forum_id=2#40715805)

GOP boomers are really, really touchy about younger people get any benefits at all.

(http://www.autoadmit.com/thread.php?thread_id=4598808&forum_id=2#40716223)

Why can you make millions of citizens or forgive loans but you can’t do that?

Fuck this country

(http://www.autoadmit.com/thread.php?thread_id=4598808&forum_id=2#40716062)

After Obama declared millions of new citizens with DACA, anything goes I guess

Fuck Rule of Law

(http://www.autoadmit.com/thread.php?thread_id=4598808&forum_id=2#40716051)

Ideal end to this election cycle is Trump having unilateral and unlimited power and most congressmen/senators in a gulag in Wyoming

(http://www.autoadmit.com/thread.php?thread_id=4598808&forum_id=2#40716496)