Second Stimulus: Student Loan Payment Pause Not Included, and Borrowers Are Furious

Democrats and Republicans were finally able to reach an agreement on another stimulus package recently. Nearly nine months after they shared the first package, the CARES Act, they have introduced a bill that would total $900 billion. Due to the package’s pared-down nature, some measures will not be included in the new bill. More specifically, the bill does not include student loan relief, nor does it extend various federal student loan flexibilities such as a suspension of payments or an interest rate pause. On social media, many have opened up with their criticisms for Congress regarding their new stimulus plan and, especially, the fact that it does not address student loan-related concerns.

Student loan expert Mark Kantrowitz told CNBC that the newest proposal includes “no loan forgiveness and no extension of the payment pause and interest waiver.” Kantrowitz added, “The previous proposal to extend the payment pause and interest waiver through April 2021 was apparently dropped from the legislation. So Joe Biden may have to use executive action to extend the payment pause and interest waiver soon after he takes office.” At the moment, given that the pause has not been extended, student loan borrowers will be required to resume making payments in February 2021.

Many individuals who were relieved to see that Congress was able to come together on an agreement for a second stimulus package after months of failed negotiations. Yet, there were many who were critical of this new package, particularly because of what it does not address.

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