Trump’s Executive Orders Come With Questions as Borrower Relief Will Soon Expire – NASFAA
President Donald Trump’s executive orders issued earlier this month in response to the ongoing pandemic may provide a short-term reprieve to student loan borrowers whose payments were set to restart in just over a month, but it’s unclear how they will be implemented and if they will provide the intended relief to borrowers in need.
Trump signed a series of executive orders, one of which extended the suspension on interest accrual for federal student loans, as well as the forbearance period through the end of the year, in an effort to bypass Congress and provide some short-term relief from the economic fallout caused by the novel coronavirus.
Trump’s executive actions are limited in scope and are meant more as a stop-gap than a long-term fix, and some believe the move will create an administrative and implementation headache — both now and when the orders expire at the end of the year.
First and foremost, Mark Kantrowitz, publisher and vice president of research for Savingforcollege.com, said the machinations of the executive order will be similar to what took place back in March when Trump signed an executive order two weeks before Congress passed the the Coronavirus Aid, Relief and Economic Security (CARES) Act.