Continued Student Loan Payment Relief During the COVID-19 Pandemic

Memorandum of August 8, 2020

By the authority vested in me as President by the Constitution and the legal guidelines of the United States of America, it’s hereby ordered as follows:

Section 1. Policy. The 2019 novel coronavirus referred to as SARS-CoV-2, the virus inflicting outbreaks of the illness COVID-19, has considerably disrupted the lives of Americans. In Proclamation 9994 of March 13, 2020 (Declaring a National Emergency Concerning the Novel Coronavirus Disease (COVID-19) Outbreak), I declared, pursuant to the National Emergencies Act (50 U.S.C. 1601 et seq.), that the COVID-19 outbreak within the United States constituted a nationwide emergency (the “national emergency”). The identical day, I additionally decided that the COVID-19 outbreak constituted an emergency of nationwide scope, pursuant to part 501(b) of the Stafford Act (42 U.S.C. 5191(b)).

On March 20, 2020, my Administration took motion to supply speedy aid to tens of thousands and thousands of student loan debtors throughout the pandemic attributable to COVID-19 by each suspending loan funds and quickly setting rates of interest to 0 p.c. This aid has helped many students and fogeys retain monetary stability. And many different Americans have continued to routinely pay down their student loan balances, to extra shortly remove their loans in the long term. During this time, debtors have been capable of decide the perfect path ahead for themselves.

The unique announcement of this coverage specified that it might proceed for at the least 60 days. In the interim, the Coronavirus Aid, Relief, and Economic Security Act supplied this identical student loan cost aid, however that program is scheduled to run out on September 30, 2020. Currently, many Americans stay unemployed because of the COVID-19 pandemic, and plenty of extra have accepted decrease wages and lowered hours whereas States and localities proceed to impose social distancing measures. It is due to this fact acceptable to increase this coverage till such time that the financial system has stabilized, colleges have re-opened, and the disaster introduced on by the COVID-19 pandemic has subsided.

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Sec. 2. Extension of Student Loan Payment Relief. (a) In gentle of the nationwide emergency declared on March 13, 2020, the Secretary of Education shall take motion pursuant to relevant legislation to effectuate acceptable waivers of and modifications to the necessities and situations of financial hardship deferments described in part 455(f)(2)(D) of the Higher Education Act of 1965, as amended, 20 U.S.C. 1087e(f)(2)(D), and supply such deferments to debtors as essential to proceed the non permanent cessation of funds and the waiver of all curiosity on student loans held by the Department of Education till December 31, 2020.

(b) All individuals who want to proceed making student loan funds shall be allowed to take action, however the deferments supplied pursuant to subsection (a) of this part.

Sec. 3. General Provisions. (a) Nothing on this memorandum shall be construed to impair or in any other case have an effect on:

(i) the authority granted by legislation to an government division or company, or the pinnacle thereof; orStart Printed Page 49586

(ii) the capabilities of the Director of the Office of Management and Budget referring to budgetary, administrative, or legislative proposals.

(b) This memorandum shall be applied in step with relevant legislation and topic to the provision of appropriations.

(c) This memorandum will not be supposed to, and doesn’t, create any proper or profit, substantive or procedural, enforceable at legislation or in fairness by any celebration towards the United States, its departments, companies, or entities, its officers, workers, or brokers, or another particular person.

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(d) You are licensed and directed to publish this memorandum within the Federal Register.

Washington, August 8, 2020

Filed 8-12-20; 11:15 am]

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