President Donald Trump on Friday said that he wouldeliminate the intereston federal student loans “until further notice” as part of a package of emergency executive actions designed to address the economic fallout from the coronavirus pandemic. Politico reports:
The unprecedented move will provide relief to the more than 42 million Americans who owe more than $1.5 trillion in outstanding federal student loans…
It’s not clear how much money the interest waiver will save borrowers, but it could be billions of dollars, depending on how long the Trump administration keeps the policy in place. In fiscal 2019 alone, the Education Department reported that it charged more than $100 billion in interest on all federal student loans…
The Education Department on Friday was still determining the mechanics of how to carry out Trump’s announcement.