NASFAA Mention: Trump Administration Lets Borrowers Suspend Federal Student Loan Payments

"A week after promising to waive interest on federal student loans, the Trump administration Friday said Americans contending with the economic fallout of the coronavirus pandemic can opt to suspend their payments altogether," The Washington Post reports.

"'These are anxious times, particularly for students and families whose educations, careers, and lives have been disrupted,' Education Secretary Betsy DeVos said in a statement. 'Right now, everyone should be focused on staying safe and healthy, not worrying about their student loan balance growing.'

For at least 60 days, the 42 million Americans holding $1.5 trillion in federal student debt can ask their loan servicer to temporarily postpone their payments. Anyone more than 31 days behind on their bill as of March 13, or who becomes that delinquent, will have their payments automatically suspended.


'We do not want COVID-19 disruptions to penalize borrowers who are on a pathway towards [Public Service Loan Forgiveness] or [Income-based] forgiveness. But it’s pretty clear that the administration has gone as far as they can go, or are willing to go,' said Justin Draeger, president of the National Association of Student Financial Aid Administrators. 'So our attention is now turning towards Congress for further student borrower help."'

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: 3/20/2020

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