Trump: Federal student loan borrowers can suspend payments for 60 days
Trump said student borrowers will not have to make loan repayments “for at least the next 60 days and if we need more, we will extend that period.”
To get the 60-day stay, borrowers who have federally held loans will need to apply to their loan departments, such as Navient, Nelnet, FedLoan Servicing, or Great Lakes, by phone or online.
But for borrowers who are already more than a month behind on their monthly loan payments, the Trump administration will automatically apply the 60-day suspension.
More than 3.2 million student loans held by the federal government are more than 31 days past due and 7.7 million more are in default, according to the most recent quarterly data from the Department of Education.
“These are anxious times, especially for students and families whose education, careers and lives have been disrupted,” Education Secretary Betsy DeVos said in a statement. “Right now everyone should focus on safety and health, not worrying about their student loan balance increasing.”
The Trump administration’s announcement comes as Congress is also debating student debt relief amid negotiations over the massive coronavirus stimulus package, S. 3548 (116).
Majority leader in the Senate Mitch mcconnellThe plan, released Thursday night, would allow the Education Department to suspend student loan payments for six months.
But Senate Democrats have said it doesn’t go far enough. Leader of the minority in the Senate Chuck schumer called for the cancellation of student loan payments made by borrowers during the national emergency and wants to guarantee borrowers at least $ 10,000 each in total loan forgiveness.
Trump, speaking at a White House press conference on Friday, also teased his administration’s additional student loan announcements.
“We have more to come on student loans, more good news for students, but we’ll do that at another time,” Trump said.
He also said that state test waivers could be accommodated by some kindergarten to grade 12 students.
“Probably a lot of the students will be extremely happy, some probably not,” Trump said. “Those who work hard, maybe not, but that’s one of those things. Very unfortunate circumstances.