Trump just waived interest on student loans

March 19, 2020

Aarthi Swaminathan, Yahoo Finance

In response to the coronavirus, U.S. President Donald Trump has just waived interest on all student loans. 

“I am announcing the following emergency actions today: to help our students and their families, I’ve waived interest on all student loans held by federal government agencies and that will be until further notice,” he said during a press conference on Friday.

Experts reacted quickly, and they were divided on the announcement.

“Dealing with interest is an important start and I’m glad they recognized the need for action to help borrowers,” Ben Miller, vice president for postsecondary education at the Center for American Progress, told Yahoo Finance. “But they need to do more to make it easier for borrowers to pause payments, automatically prevent individuals from going delinquent, and immediately stop the seizure of tax refunds, security, and wages for defaulted loans.”

“No one should fall behind on their student debts because of this national crisis,” James Kvaal, former President Obama’s top higher education adviser, told Yahoo Finance. “Waiving interest is welcome, but the key question is whether students and parents can reduce or halt their monthly payments​. Pausing payments and stopping punitive loan collections would give immediate relief to students and parents facing economic hardship and uncertainty.”

President Donald Trump speaks during a news conference about the coronavirus in the Rose Garden of the White House, Friday, March 13, 2020, in Washington. Department of Health and Human Services Secretary Alex Azar, right, and Vice President Mike Pence listen. (AP Photo/Evan Vucci)
 
President Donald Trump speaks during a news conference about the coronavirus in the Rose Garden of the White House, Friday, March 13, 2020, in Washington. Department of Health and Human Services Secretary Alex Azar, right, and Vice President Mike Pence listen. (AP Photo/Evan Vucci)
 

To be clear, Trump has not yet elaborated on how exactly this will take place, and whether this is for all loans or just for federal student debt, which one expert alluded to.

To Read More, Click Link Below:

https://finance.yahoo.com/news/trump-waive-interest-on-student-loans-210904377.html

3 thoughts on “Trump just waived interest on student loans

  1. A great help that the president gives to the students because this crisis does not have a certain time. It can last for months and would increase the distress of payments. On the other hand, the payment of fixed fees is a more complicated matter. In short, we will see how the President will solve it, although with an election on the horizon, anything can happen.
    regards
    Manuel

    Liked by 1 person

    • Thanks Manuel! I don’t think any leader can solve this issue :(. It’s going to take sacrifice from the upcoming generations to just say no to debt. Thank so much for stopping by! 🙂 I will have to see what’s new at your site!

      Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.