It is not clear what the president’s executive measures for student loans would mean. In March, Trump unilaterally stopped interest rates on federally held student loans. The CARES Act, HR 748 (116), then codified this policy into law in March and took it a step further, automatically suspending monthly payments.
Trump’s threat of action comes as negotiations remain stalled on Capitol Hill over another economic rescue package to deal with the fallout from the coronavirus pandemic.
The Congress Democrats have proposed extending the student loan to cover more borrowers and extend the protection by at least another year. These benefits are otherwise scheduled to expire on September 30.
The Senate Republican Incentive Plan, p. 4320 (1
But there have been increasing calls from Republicans in recent days to extend the student loan facility granted under the Care Act this spring.
Three Republican attorneys general on Wednesday signed a letter urging congressional leaders to extend the relief to more borrowers and consider further extending the benefits after September.
Then John Cornyn (R-Texas) also supported an extension of the CARES Act student loan relief earlier this week, saying on the Senate floor that the benefits had been popular with his constituents.
“With so much financial uncertainty, we can not allow that provision to cease to apply,” Cornyn said on Monday. “Student loan debt is a real and growing problem in our country, and families should never be in a situation where they are sacrificing their basic needs just to make these student loan payments, especially during a global emergency.”