New Trump Executive Order —> Further Student Loan Deferrnent

[pslfhopeful]

Details are absent, but Trump said due to deadlock in DC regarding new stimulus, he will sign executive orders, including continuation of federal student loan interest forgiveness and loan deferment “indefinitely”.

interesting... particularly those of us on track for PSLF!

[ENT Doc]

Sounds about as legal as DACA.

[pslfhopeful]

I’ll stay away from politics. Just reporting it as it is very relevant to a lot of WCI members, should it pass.

[CordMcNally]

I’ll stay away from politics. Just reporting it as it is very relevant to a lot of WCI members, should it pass.

I don't pretend to be an A student in Civics but what do the executive orders have to pass? They're executive orders.

[Lithium]

Story I read indicates payroll taxes will be deferred retroactive to 7/1, eviction moratorium extended. Democrats will challenge in court.
I have no idea if or when employers will actually stop withholding payroll taxes or whether we are just supposed to apply for a credit next year. I guess I shouldn't complain, but figuring my estimated taxes is bad enough already.
This definitely wasn't covered in my 9th grade civics class.

[pslfhopeful]

I don't pretend to be an A student in Civics but what do the executive orders have to pass? They're executive orders.

I should have said, if he truly enacts the executive order (right now it was just discussed in a speech) and if said order is not shot down in the courts...

[Hank]

Sounds like an awful lot of executive fiat, whether or not you like these policies or personality of the current occupant of the White House.

[Frozensection]

He’s up for re-election and instead of pandering to the already wealthy elites he’s offering a bit of a break to actual Americans in need. It’s probably a good strategy to help get re-elected. Not only that, it’s probably the ethical thing to do to make things more fair for the non-billionaire class. Why should we care if Jeff Bezos loses out on $10 billion.

[Frozensection]

I read Trump also plans to forgive student loan interest. Would be pretty sweet to have student loan payments halted a few more months. Trump is quite the guy.

[Frozensection]

Sounds like an awful lot of executive fiat, whether or not you like these policies or personality of the current occupant of the White House.

I think the goal is to get citizens to continue to spend money. It’s been hard for a lot of people with covid + student loans.

[legobikes]

All the loan payments I won't have to make to get PSLF made up for all the leave I took without pay at the start of COVID.

[Tim]

Lack of progress and clarity. Income taxes for the employee or fica EE Nd ER and Medicare?
Evictions? Student loans?
This is obviously an attempt to break the impass and nothing more. Trump also said the authority is squishy, but what the heck, DC needs to do something, period. Of course it will be challenged in court. $3t vs $1t is a big difference. Something’s absolutely need to be done. Last week, both sides seemed to be in agreement. The $2t seems inconceivable. No sense debating the rhetoric.

[Minnesconsin]

It seems pretty clear to me that both the Dems and Trump/a growing number of Republicans realize that extending the CARES Act student loan provisions are in their best interest politically given it's an election year. I'm fairly confident such an extension will occur either by presidential EO or bipartisan agreement. Don't forget, CARES Act just codified Trumps EO that suspended all federal student loan interest and payments at the beginning of the pandemic.

Now on to my question: As a brand spanking new attending, I'm still confused why anyone would consider refinancing their federal student loans right now. I'm extremely hesitant to get rid of federal loans given the governments willingness to offer me $0 monthly payments and 0% interest. I'm not seeing the downside to throwing what I would pay each month into my high interest savings account and wait for the day my payments actually restart. This day is starting to look further and further out (possibly 12 months!).

This seems so clear-cut to me, but I feel like so much of what I read on WCI is "refinance on 9/30, rates will go up because of demand, etc etc." Federal loans seem to be a pretty safe bet for me right now. The last thing I want to do is commit myself to 5 or 6 figure monthly payments if another shutdown could threaten my current employment (associates were laid off during the first shutdown and quickly brought back). I'm always able to refi later when the pandemic is over and the CARES act provisions actually end.

[JBME]

it will get challenged in court. no way do the courts resolve this in time for the election. the main question is, while it goes through the courts, does a judge allow the orders to be "in place" or does the judge put an injunction on them saying that they aren't in effect until the courts have blessed them. either way, this is just talk right now and not actual action

[East coast]

deleting double post.