This Week In Washington
On Saturday, the president signed an executive order directing the Department of Education (ED) to extend the pause on all federally-held student loan payments and accrual of interest until December 31, 2020. Recall that the president suspended student loan payments for two months via executive order in March, with the Coronavirus Aid, Relief, and Economic Security (CARES) Act codifying that action into law and extending it to six months. Questions remain, however, about whether this executive action is as expansive as the relief provided by the CARES Act. The executive order comes as negotiations for the next stimulus package between Congressional Republicans and Democrats and the White House remain stalled.
News You Can Use
Student loan forbearance granted by the CARES Act caused an increase to borrowers’ credit scores, although experts warn the jump might only be temporary.
A new white paper found that increased access to student loans boosts student debt, but also increases degree completion, employment earnings later in life, and student loan repayment rates.
No relevant student aid bills were introduced this week for consideration by the 116th Congress (2019-2020).