NASFAA Mention: Trump: Federal Student Loan Interests Will Be Waived in Midst of Coronavirus Crisis

"In his address to Americans about the coronavirus crisis, President Donald Trump announced good news for those who owe federal student loans," The Atlanta Journal-Constitution reports.

"He said during his press conference to 'help our students,' he would order all interest waived on federal student loans as Americans seek to overcome the economic impact of coronavirus pandemic. The relief could impact tens of millions of student loan borrowers. 

... It was unclear how the government would seek to implement the forgiveness. Lawmakers had presented ideas like pausing loan payments or forgiving debt entirely during the crisis, which would have better impact on debt relief, according to the National Association of Student Financial Aid Administrators.

Earlier this month, the Federal Reserve cut interest rates by half a percentage point due to 'evolving risks to economic activity' posed by the spread of the new virus. That was the most significant cut since 2008, according to NASFAA. Federal student loans have fixed interest rates, so they are primarily immune to those changes. Concerns continue to mount about borrowers’ ability to repay their loans as more offices close their doors to employees to avoid spreading the infection."

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: 3/13/2020

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