ExecutiveOrdersEO
Memo 9994MemorandumTrump 45 · R

Presidential Memorandum 9994

Continued Student Loan Payment Relief During the COVID-19 Pandemic

Economy & LaborEconomy & LaborEducationEducationFederal WorkforceFederal Workforce

In simple terms

This memorandum directs the Secretary of Education to extend temporary student loan payment relief—suspending payments and setting interest rates to 0%—through December 31, 2020, building on earlier COVID-19 relief measures scheduled to expire September 30, 2020. Borrowers may still make voluntary payments during this period.

Federal Register Open PDF 85 FR 49585

Record & deadlines

  1. Signed

    Signed by the President

  2. FR published

    Published in the Federal Register · 85 FR 49585

    Federal Register PDF

  3. Student loan payment relief expires (cessation of payments and interest waiver ends)

  4. CARES Act student loan relief expires (contextual deadline referenced)

Key directives

  • Secretary of Education shall take action to effectuate waivers and modifications to economic hardship deferments under 20 U.S.C. 1087e(f)(2)(D)
  • Continue temporary cessation of payments and waiver of all interest on federally held student loans until December 31, 2020
  • Allow voluntary continued payments notwithstanding deferments
  • Publish memorandum in the Federal Register

Who is ordered

Prior policy

  • otherMarch 20, 2020 Administration student loan relief policy

Related orders

  • referencesEO Proclamation 9994

What to expect

Immediate

  • Secretary of Education directed to take action to extend relief

Near term (90d)

  • Relief period runs through December 31, 2020
  • CARES Act relief expires September 30, 2020

Long term

  • No structural changes to student loan program; temporary measure only

Risks & tensions

  • Extension uses 'until such time that the economy has stabilized, schools have re-opened, and the crisis...has subsided' as policy rationale, but hard deadline of December 31, 2020 may not align with those conditions
  • Relief limited to loans 'held by the Department of Education'—excludes commercially held FFEL and private loans
  • Temporary measure creates cliff effect at year-end; no automatic extension mechanism
  • Subject to availability of appropriations creates contingent implementation risk
Presidential Memorandum 9994: Continued Student Loan Payment Relief During the COVID-19 Pandemic · Executive Orders