Student loan payments were paused twice during the Trump administration, but for different reasons and with different rules

President Trump did not halt student loans through executive action during his first term (2017–2021). Instead, Congress passed the CARES Act in March 2020 in response to the COVID-19 pandemic, which automatically paused federal student loan payments and set interest rates to 0% for all borrowers. This pause lasted through July 2023, long after Trump left office. Trump's administration did not extend the pause beyond what Congress had already set, and did not create new pause authority on its own.

The confusion often comes from the fact that the pause continued under President Biden, who extended it multiple times before it finally ended in October 2023. Many people associate the entire pause period with whoever was president when they heard about it, rather than with the law that created it.

Key Takeaways

  • Congress, not Trump, created the student loan pause through the CARES Act in March 2020 as a pandemic relief measure.
  • The pause applied to all federal student loans and set interest to 0% for the duration, but Trump did not extend it beyond the original end date Congress set.
  • The pause continued under President Biden, who extended it several times until it ended in October 2023.
  • Private student loans were never included in any pause, whether under Trump or Biden.

What the CARES Act actually did

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was a $2 trillion spending bill passed by Congress on March 27, 2020. One section of it suspended payments on federal student loans and set the interest rate to 0% for six months, starting March 13, 2020. This was automatic — borrowers did not have to request it, and it applied to all federal loans held by the Department of Education, including Direct Loans, FFEL loans, and Perkins loans.

The pause was meant to free up cash for households facing sudden job loss or income reduction during the early pandemic shutdown. Borrowers could still make payments if they wanted to, and any payment made would go entirely toward the principal balance since interest was frozen at 0%.

The original CARES Act pause was set to expire on September 30, 2020 — while Trump was still president. Trump's administration did not extend it at that point. Instead, Congress passed another law in December 2020 (part of the omnibus spending bill) that extended the pause through January 31, 2021, just before Trump left office.

What Trump's administration did and did not do

Trump's Department of Education did not create the pause, did not extend it beyond what Congress authorized, and did not add new borrowers to it. The administration followed the terms Congress had set in the CARES Act and the December 2020 extension.

What Trump's administration did do was enforce the pause as written. The Department of Education sent notices to loan servicers, updated borrower accounts, and made sure the 0% interest rate was applied. This was administrative work to carry out a law Congress had passed, not a policy choice by the president.

After Trump left office on January 20, 2021, President Biden extended the pause on his first day in office through September 30, 2021. Biden then extended it multiple times over the next two years, eventually ending it on October 1, 2023.

Why people think Trump halted student loans

The confusion likely stems from several sources. First, the pause happened during Trump's presidency and was widely discussed in news coverage at the time, so people associate it with his administration. Second, Trump's name appeared in official Department of Education communications about the pause, since those came from his administration's officials. Third, the pause lasted so long — from March 2020 through October 2023 — that many people remember it as a single, continuous policy rather than a series of extensions by different presidents.

Additionally, Trump did not publicly oppose the pause or try to end it early, which some people interpreted as him supporting it. In reality, the pause was set by Congress, and Trump's administration straightforward administered it according to law.

Private loans and other loan types

The CARES Act pause applied only to federal student loans held by the Department of Education. Private student loans, Parent PLUS loans made through private lenders, and loans from state agencies were not included. If you had a private student loan, your payments and interest continued normally throughout the entire pause period, regardless of who was president.

Federal loans made before 1993 (FFEL loans) and Perkins loans were included in the pause, even though they are sometimes serviced by private companies. The key was whether the Department of Education owned or may provide the loan, not who collected the payments.

What happened when the pause ended

On October 1, 2023, under President Biden, the student loan payment pause ended. Borrowers had to resume making monthly payments on their federal loans. Interest rates returned to their original levels (which vary by loan type, typically between 4.5% and 8.5% for loans made in recent years). The pause had lasted three and a half years total.

Borrowers who had made extra payments during the pause had those payments applied to their principal balance, which reduced the amount they owed. Those who made no payments during the pause owed the same amount they owed on March 13, 2020, plus any interest that accrued after the pause ended.

Frequently Asked Questions

Did Trump create the student loan pause?

No. Congress created the pause through the CARES Act in March 2020. Trump's administration carried out the law Congress passed, but did not create the pause itself. The pause was a legislative action, not an executive action.

Could Trump have ended the pause early?

Technically, Trump could have asked Congress to end it, but he could not have ended it unilaterally. The pause was written into law by Congress, so only Congress could have repealed it, or the president would have needed Congress to pass a new law. Trump's administration did not attempt either.

Did the pause explore to all student loans?

No. The pause applied only to federal student loans held by the Department of Education. Private student loans, private Parent PLUS loans, and loans from state agencies were not paused. If you had a private loan, you had to keep making payments throughout the entire pause period.

When did payments actually start again?

Federal student loan payments resumed on October 1, 2023, under President Biden. Interest rates returned to their original levels at that time. The pause lasted three and a half years from its start in March 2020.

If I made payments during the pause, did they help me?

Yes. Any payment you made during the pause went entirely toward your principal balance because interest was frozen at 0%. This reduced the total amount you owed. Payments made during the pause were not wasted — they lowered your balance more than they would have if interest had been accruing.