President Donald Trump waives interest on all student loans due to coronavirus
President Trump joins the news conference on the coronavirus pandemic.
President Donald Trump said Friday that he would waive the interest on all federal student loans amid the coronavirus outbreak, meaning borrowers could pause their payments without any penalties.
The measure is part of a larger strategy to mitigate the economic consequences of the pandemic which has so far infected more than 130,000 people and killed over 5,000 worldwide since January. Further details weren’t immediately available such as how long the pause might last.
Currently, the U.S. Department of Education allows borrowers to put their federal student loans into a so-called deferment or forbearance if they want or need a break from their monthly bills. However, interest can accrue on the debt under those options, leaving a borrower with a bigger balance when they resume repayment.
While details are still scant on Trump’s proposal, it appears that borrowers could use these options without their debt growing.
Senate Democratic leader Chuck Schumer sent a letter to the president on Wednesday with 30 Senate Democrats, asking him to grant six months of forgiveness for those with student debt. Meanwhile, consumer advocates have warned that the impacts of the pandemic could make it hard for many people to keep up with their student loan bills.
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