Suspend student loan payments until 2020
Student loan payments have been temporarily suspended due to the coronavirus pandemic, but this almost at the end. A proposal Congressman Steve Stivers (R-OH) would extend the suspension of student loan payments until the end of the year.
The CARES law provided for a suspension of federal student loan payments and interest accrued for about six months, but it expires on September 30, 2020. Many are pushing for this to continue as the economy still has not recovered and the coronavirus pandemic is only getting worse in some states .
the Economic and Student Loan Debt Relief Act, 2020 proposed by Stivers would extend the suspension of student loan payments until December 31, 2020. This would give student loan borrowers another three-month hiatus on their student loan payments, without interest.
Others argue that this is not enough. Senator Elizabeth Warren (D-MA) has been lobbying for at least $ 10,000 in student loan forgiveness since before the passage of the CARES law this spring and continues to push for it. The House passed a bill which granted debt relief to distressed borrowers, but extended the suspension of student loan payments for an entire year.
However, Republicans have shown little interest in canceling student loans. This bill is one of the few times Republicans have indicated what they could do around student loans in the next stimulus package.
While there is still some time before the expiration, Americans will likely know in the next few weeks whether the suspension of the student loan will continue. Improved unemployment benefits under the CARES Act expire at the end of this month, prompting Congress to act sooner.
Given the reluctance of lawmakers to pass more laws, they will likely address this issue in this bill. Senate Majority Leader Mitch McConnell said only one bill would pass. He is expected to publish his proposal soon, possibly next week.