Trump Suspends Student Loan Payments

Borrowers who were counting on the suspension of their student loan payments to be automatically activated by Congress got some bad news on Saturday. President Trump signed an executive order suspending all direct payments from federal student loans, starting Sept. 1 and lasting until the end of 2020. This means that affected borrowers — no matter what kind of loan they have — won’t have to make payments during this time. The suspension applies to student loan payments made directly through the Department of Education, but it doesn’t apply to private student loans or loans made through employers. The student loan payment pause would have been automatically activated if Congress passed the HEROES Act, which was approved by the House but has stalled in the Senate.”

Suspended payments will start Sept. 1, and the relief will last until the end of 2020.

>As a result of the shutdown, federal student loans will be suspended until after the government reopens. This means that affected borrowers — no matter what kind of loan they have — won’t have to make payments during this time.

>The relief will last until the end of 2020, so if you’re supposed to make payments in 2021 or 2022, it’s possible that those months won’t be covered by this freeze either. If your loan servicer tells you otherwise, ask for proof showing why they’re saying this; if they can’t provide it within 10 days, contact your senator’s office and ask them to intervene on your behalf.

This means that affected borrowers — no matter what kind of loan they have — won’t have to make payments during this time.

The suspension applies to student loan payments made directly through the Department of Education, and it does not apply to private student loans or loans made through employers. It also does not apply to federal student loans.

Student loan debt in America amounts to more than $1.6 trillion, according to data from the Federal Reserve Bank of New York.

Student loan debt in America amounts to more than $1.6 trillion, according to data from the Federal Reserve Bank of New York. That’s a staggering amount of money, but it’s not just a problem for those who are struggling to pay their loans back—student loan debt is a major problem for the economy as a whole.

If you’re curious about how student loans affect your credit score and credit reports, check out our guide on how student loans impact your credit scores and what you can do about it!

The suspension applies to student loan payments made directly through the Department of Education, but it doesn’t apply to private student loans or loans made through employers.

The suspension applies to student loan payments made directly through the Department of Education, but it doesn’t apply to private student loans or loans made through employers.

Private student loans have a higher interest rate than federal loans and can be a great resource for students who need additional funds beyond what their financial aid office provides. However, private lenders are also much more likely to come after you if you default on your debt. If you don’t make payments on your federal student loan for 270 days after leaving school (or 240 days if you’re in an income-based repayment plan), then the entire balance is due immediately—but with most private lenders, they’ll work with you until they get paid off in full and some may even forgive part of your debt!

The student loan payment pause would have been automatically activated if Congress passed the HEROES Act, which was approved by the House but has stalled in the Senate.

The HEROES Act would have automatically paused student loan payments if Congress passed a bill that was approved by the House but has stalled in the Senate. The HEROES Act, which stands for Higher Education Relief Opportunities for Students Act, was not passed by either chamber of Congress. It was passed by the House on April 1, 2019 and then sent to a Senate committee for review. In May 2019, it remained pending before that committee.

For now, no one knows why Trump decided to issue an executive order after all this time or what kind of impact such an order would have on borrowers who may qualify for Public Service Loan Forgiveness (PSLF).

Instead, President Trump issued an executive memorandum on Saturday directing Secretary of Education Betsy DeVos to implement the order.

The suspension will last until the end of 2020, and it applies to all student loan borrowers. The suspension only applies to payments made directly through the Department of Education, but it doesn’t apply to private student loans or loans made through employers.

As part of the executive order, President Trump directed Secretary of Education Betsy DeVos to take action on his plan within 120 days.

You can get a break from your student loan for the rest of 2020

If you’re a student loan borrower with federal loans, you can get your monthly payment suspended for the rest of 2020. The suspension lasts through June 2020, and borrowers in good standing will be able to reapply for a second six-month extension through Dec. 31, 2021. If you’re looking for ways to save money on your student loans, or have already refinanced out of federal loans into private ones, this is not the option for you. You’ll have to pay off those private debts separately from any assistance offered by the government because personal responsibility is important! You don’t need handouts from people who didn’t do what my dad did when I was growing up: work hard and provide for his family by doing whatever job he could find—even if it meant picking strawberries in 100 degree weather during summer break at high school so we could buy groceries and keep our electricity on (but don’t worry—it paid off!).

It’s hard to know what will happen next year when the suspension ends and the debts resume. But if you’re worried about your student loan payments, it might be worth applying for some kind of deferment or forbearance.