Endorses Slam Trump’s Executive Order on Student Loans Amid Calls for Student Debt Cancellation

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President Trump signed one on Saturday Executive memorandum that pretends to extend temporarily Student Loans Relief for millions of Americans. Trump issued the memorandum after Congress failed to compromise on expanding student loan relief and other expiring economic aid programs.

Previously, Congress suspended all payments, interest, and collections on government-held federal student loans for six months under the CARES Act. This student loan relief expires at the end of September. The Democrats had supported a 12-month extension of the student loan provisions of the CARES Act, an extension of those provisions to other types of student loans, and extensive lending for federal and federal loans private student loans for economically distressed borrowers. The Senate Republicans rejected these proposals.

Student loan advocates criticized the president’s memorandum as being utterly inadequate.

“The president’s actions on student debt do not meet the needs of Americans to stay afloat in this unprecedented health and economic crisis,” the Student Borrower Protection Center said in one statement. “First, all borrowers deserve relief. This includes the 9 million borrowers with loans that are not covered by the President’s proposal. Second, as we said earlier, disrupting payments will only pave the way for borrowers facing job loss and financial upheaval – including millions who were in distress before the pandemic. The tens of millions of Americans drowning under the burden of student debt desperately need significant relief, not political games. “

Connected: Best private student loans of 2020

Other proponents noted that the president’s memorandum is vague. “There are still many unanswered questions,” said the National Consumer Law Center in one Tweet. While the memorandum stated that the memorandum was an “important first step” in providing relief to student loan borrowers, it argued, “By Congress, the president or the Department of Education will act to cancel student loan debt, deferrals and interest suspension Hardship of the borrower only delay when they enter the repayment on their back Student Loans after the COVID crisis. “

Recently, over 100 civil rights organizations and consumer groups asked Congress to do so Cancel student debt.

The President’s Memorandum on Student Loans states that a temporary suspension of payments and interest on federal student loans under the CARES Act that expires after September 30, 2020 may be extended to December 31, 2020. However, important questions remain unanswered, including whether or not borrowers are in default on theirs Student Loans The suspension affects whether the renewal is automatic and universal, and whether borrowers en route to lending programs such as public lending can continue to make progress during the extended suspension period. The memorandum contains no clear answers. “This omission is deeply worrying,” noted the National Consumer Law Center in a blog entry.

The US Department of Education did not respond to a request for comment.

further reading

Analysis: Trump’s vague student loan order leaves many questions unanswered

Student loan stimulus: Multi-state coalition calls on DeVos to take action if compromise hopes weaken

Second Student Loan Stimulus: Five Possible Scenarios

Here’s what to do if Congress does not extend student loan relief.

Trump: “We are considering” extending the suspension of student loan payments

GOP is said to include $ 1,200 checks but no new student loan relief in the stimulus bill

Democrats: Freeze all student loan payments, interest for 12 months

Over 100 civil rights groups are telling Congress: Cancel student debts in the next bill

Rep. Ayanna Pressley: Cancel Student Loan Debt Now

GOP concerns about cost could limit student loan relief for the next incentive

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