Mnuchin floats suspending student loan payments as part of pandemic economic response by Jay Heflin | March 13, 2020 09:32 AM
Treasury Secretary Steven Mnuchin said Friday that the administration is considering a three-month suspension for student loan payments to help shore up the economy as it is hit by the fallout from the coronavirus pandemic.
"I can tell you that's on our list of 50 different items we're bringing to the president for a decision. So that will be something we're looking at," Mnuchin told CNBC.
The proposal would only suspend payments on what students owe. It would not reduce the amount owed.
Aggregate student debt exceeds $1.6 trillion, according to the Federal Reserve.
The administration is pursuing unilateral actions to protect the economy at the same time that it is working with Congress to enact a legislative package that would, among other provisions, ramp up testing for the disease, boost medical funding for states, and provide benefits for workers kept home by quarantines.
Talks on the bill are “going very well” with House Speaker Nancy Pelosi, Mnuchin said.
“I think we are very close to getting it done,” he said.
Pelosi aims to pass the bill Friday. The Senate is adjourned until Monday, so the earliest the bill can reach President Trump’s desk to be signed into law is next week.
Mnuchin referred to the current bill as “the second inning in a baseball game” as it will be the second legislative effort after Washington approved an $8.3 billion bill aimed at stopping the spread of the virus. He said the administration would also focus on addressing concerns with the travel industry. He said that Trump still wanted to move a stimulus bill that would include payroll tax cuts.
Poster Comment:
Everyone jump on the bandwagon.