"In response to the coronavirus, U.S. President Donald Trump has just waived interest on all student loans," Yahoo Finance reports.
"'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.
...'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.'
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.
'We support anything that can help ease the challenges students are facing, including relief on their student loans,' NASFAA President and CEO Justin Draeger said in a statement. 'At this time, we don’t have details on what exactly this policy change means for borrowers.'"
NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.
Publication Date: 3/16/2020