Student loan payments were paused twice during Donald Trump's time in office, but the reasons and timing differed
The first pause came in March 2020, when President Trump invoked the CARES Act in response to the COVID-19 pandemic. This action stopped loan payments, froze interest accrual, and halted collections on federal student loans for 60 days. The pause was later extended multiple times and remained in place through the end of his presidency in January 2021.
The second pause was not initiated by Trump directly. After President Biden took office, he extended the existing pause through September 2021, then continued it further. However, the original decision to pause loans in the first place came from Trump's administration using emergency powers during the pandemic.
Understanding what actually happened requires separating the initial pause from what came after, since the policy changed hands between administrations and the reasons shifted over time.
Key Takeaways
- Trump paused federal student loan payments in March 2020 under the CARES Act, citing the COVID-19 pandemic as the reason.
- The pause stopped monthly payments, froze interest on most federal loans, and halted collection efforts on defaulted loans.
- The pause remained in effect through January 2021 when Trump left office, though it was extended multiple times during his presidency.
- After Trump left office, President Biden extended the pause further, eventually keeping it in place until late 2023.
How the CARES Act pause worked
The CARES Act, passed in March 2020, gave the Secretary of Education authority to pause federal student loan payments during a national emergency. Trump's administration used this power to halt payments on loans held by the U.S. Department of Education, which covers most federal student loans including Direct Loans, FFEL loans, and Perkins loans.
During the pause, borrowers did not have to make monthly payments. Interest stopped accruing on most federal loans, meaning the loan balance did not grow even though no payments were being made. For borrowers in default, collection activities stopped as well.
The pause applied only to federal student loans. Private student loans, which are issued by banks and other private lenders rather than the government, were not affected and continued to require payments.
Timeline of the pause under Trump
The pause began on March 13, 2020, initially set to last 60 days. As the pandemic continued, Trump's administration extended it several times:
- March 13, 2020: Initial 60-day pause announced
- May 2020: Extended through September 30, 2020
- August 2020: Extended through December 31, 2020
- December 2020: Extended through January 31, 2021
When Trump left office on January 20, 2021, the pause was still in effect and set to expire on January 31, 2021. President Biden then extended it further, continuing the policy beyond Trump's presidency.
Which loans were covered and which were not
Federal loans held by the Department of Education were paused. This includes Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. Federal Perkins Loans and FFEL loans held by the government were also covered.
Loans not covered by the pause included private student loans from banks and other private lenders, FFEL loans held by private lenders (rather than the government), and Parent PLUS loans issued before October 1, 2015 that were held by private lenders.
Borrowers could check which type of loan they held by logging into studentaid.gov or contacting their loan servicer. The servicer name appears on monthly statements and billing notices.
What happened to interest during the pause
For most federal loans, interest stopped accruing during the pause. This meant that if a borrower owed $30,000 before the pause began, the balance remained $30,000 throughout the pause period, even though no payments were being made.
Parent PLUS loans were an exception. Interest continued to accrue on Parent PLUS loans even during the pause, so the loan balance grew each month even though payments were not required.
When payments resumed after the pause ended, borrowers' first payment went toward the accrued interest and then toward principal, just as it would in normal circumstances.
What changed when Biden took office
President Biden extended the pause on his first day in office, January 20, 2021. He then extended it multiple times over the following two years, citing the ongoing effects of the pandemic on borrowers' finances.
Biden also announced a one-time loan forgiveness program in August 2022, which would have canceled up to $20,000 in federal student loan debt for Pell Grant recipients and up to $10,000 for other borrowers. This program faced legal challenges and was ultimately blocked by the Supreme Court in June 2023.
The pause under Biden's administration lasted longer than under Trump's, remaining in place until December 31, 2023. After that date, federal student loan payments resumed and interest began accruing again.
Frequently Asked Questions
Did Trump forgive student loans?
No. Trump paused payments and interest but did not cancel any loan balances. Borrowers still owed the full amount they had borrowed; they straightforward did not have to make payments during the pause period. Loan forgiveness is a different action that cancels part or all of a loan balance, which Trump did not do.
Could borrowers still make payments during the pause?
Yes. The pause meant payments were not required, but borrowers could choose to make payments anyway if they wanted to pay down their balance faster. Any payments made during the pause went directly toward the principal since interest was not accruing.
What happened to people in default during the pause?
Collection activities stopped during the pause, meaning wage garnishment, tax refund offsets, and calls from debt collectors halted. However, once the pause ended, collection could resume unless the borrower had made arrangements with their loan servicer.
Did private student loans get paused too?
No. The pause only applied to federal student loans held by the Department of Education. Private student loans continued to require payments throughout the pause period. Borrowers with private loans had to keep making monthly payments as usual.
How long did the pause last in total?
Under Trump, the pause lasted from March 13, 2020, through January 31, 2021 — about 10.5 months. President Biden then extended it further, and the total pause lasted until December 31, 2023, making it nearly four years in total across both administrations.