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What Trump’s Executive Order Means For Your Student Loans

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President Donald Trump’s executive order may have a big impact on your student loans.
President Donald Trump’s executive order may have a big impact on your student loans. Here’s what you need to know — what it means for your student loans. In a memorandum to U. S. Secretary of Education Betsy DeVos, Trump directed DeVos to extend several student loan benefits until December 31,2020. The student loan relief follows similar student loan relief contained in the Cares Act (the $2.2 trillion stimulus package that Congress passed in March), which followed Trump’s executive action earlier this year that provided similar student loan relief for 60 days prior to passage of the Cares Act. “Currently, many Americans remain unemployed due to the COVID-19 pandemic, and many more have accepted lower wages and reduced hours while States and localities continue to impose social distancing measures,” Trump wrote in the memorandum. “It is therefore appropriate to extend this policy until such time that the economy has stabilized, schools have re-opened, and the crisis brought on by the COVID-19 pandemic has subsided.” Let’s dive in to understand what this means for your student loans. Under Trump’s executive action, your federal student loans will be paused through December 31,2020. This means that you do not need to make payments until January 1,2021. Absent this extension, your federal student loan payments would have resumed on October 1,2020. Why? Congress passed the Cares Act, which provided multiple student loan benefits, including a student loan payment pause. If you want to pay off student loans faster, you can still pay your federal student loans during this period. Trump wrote in the memorandum that many student loan borrowers have continued to make student loan payments since March, despite the temporary pause, to pay off their student loans faster. Until December 31,2020, interest will not accrue on your federal student loans.

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