President Donald Trump is suspending payments on federal student loans amid the coronavirus outbreak.
On Friday, Trump and the White House Coronavirus Task Force held a news conference to give an update about the administration’s response efforts.
During the press conference, Trump confirmed he is pausing all student loan payments on federally held loans. He also announced the interest will not accrue on those loans. The president has indicated that the order is effective immediately.
He also encouraged students to contact lenders in an effort to communicate. The order is effective for the next 60 days. However, Trump did indicate that the order could be extended depending on whether or not the coronavirus outbreak is contained by that time.
Check out Trump’s statement below:
President Trump announces waiving all interest on federally-held student loans for at least the next 60 days:
— NBC News (@NBCNews) March 20, 2020
“I’ve instructed them to take that action immediately.” pic.twitter.com/37ScFG9GeL
U.S. Education Secretary Betsy DeVos has also applauded Trump for his efforts during this critical time.
“These are anxious times, particularly for students and families whose educations, careers, and lives have been disrupted. Right now, everyone should be focused on staying safe and healthy, not worrying about their student loan balance growing. I commend President Trump for his quick action on this issue, and I hope it provides meaningful help and peace of mind to those in need.”
Trump’s order comes one week after the Rose Garden address where he declared the coronavirus a national emergency. At the time, he said student loan waivers would be part of the emergency orders he would be unrolling out.
“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,” Trump previously said. “That’s a big thing for a lot of students that are left in the middle right now. Many of those schools have been closed.”
The federal government estimates that there is approximately $1.6 trillion in student loan debt. Trump’s order will impact roughly 42 million Americans.
