Education Secretary Betsy DeVos announced on Aug. 21, the terms for President Donald Trump’s executive order, “Memorandum on Continued Student Loan Payment Relief During the COVID-19 Pandemic,” which addresses federal student loan payments during the coronavirus pandemic.
Secretary DeVos noted, “The collections on defaulted, federally held loans are still halted, and any borrower with defaulted federally held loans whose employer continues to garnish their wages will receive a refund of those garnishments. Non-payments by borrowers working full-time for qualifying employers will count toward the 120 payments required by the Public Service Loan Forgiveness program and as payments that are required to receive forgiveness under an income-driven repayment plan.”
The executive order, issued on Aug. 8, also extends the current moratorium on interest accrual and student loan payments through Dec. 31. The moratorium, established in the Coronavirus Aid, Relief, and Economic Security Act (CARES, P.L. 116-136), was initially set to expire on Sept. 30 [see Washington Highlights, Aug. 14].