Trump Announces Economic Respite For Americans With Student Loans
Perhaps it’s just me, but it seems like all that scary European-style capitalism and FDR-era Democratic socialism only makes sense to Republicans during a pandemic.
The GOP-controlled Senate, much to the dismay of Democrats who were left out of negotiations, passed their own massive Coronavirus stimulus bill Thursday.
After announcing plans of waiving interest on federal student loans, President Trump just announced that he’ll also be waiving student loan payments for 60 days as many Americans are losing their weekly income due to COVID-19.
“Today, [Education] Secretary [Betsy] DeVos has instructed federal lenders to allow borrowers to suspend their student loans and loan payments without penalty for at least the next 60 days,” Trump said. The president added that the time period could be extended depending on the state of the pandemic.
President Trump promises a break on student loan interest and payments, and says the Dept. of Education will not enforce standardized testing requirements due to the coronavirus pandemic. https://t.co/MTD3LmutWT pic.twitter.com/pjO5leAPaF
— CNBC (@CNBC) March 20, 2020
The Department of Education confirmed Trump’s words in a press release issued later on Friday:
“Borrowers will have the option to suspend their payments for at least two months to allow them greater flexibility during the national emergency. This will allow borrowers to temporarily stop their payments without worrying about accruing interest.”
A large number of economists have predicted that the U.S. economy is plunging into a recession and that the unemployment rate could soar because many Americans have been forced to stay home and cannot work in many key industries due to the virus and social distancing rules.
Moreover, a slew of businesses are struggling to pay their bills and are laying off workers. The travel industry has been hit particularly hard, but more and more companies are now raising the alarm.