trump announcing student loan interest initiative

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Trump waives federal student loan interest in response to coronavirus

'Interest? Such a bold initiative.'

 

Tiffanie Drayton

Tech

Posted on Mar 15, 2020   Updated on Mar 15, 2020, 12:23 pm CDT

President Donald Trump claims he is waiving federal student loan interest in response to coronavirus, and social media users sas it’s just not enough.

Friday afternoon in a ceremony in the Rose Garden, Trump announced that he would be waiving student loan interest “until further notice.”

“To help our students and their families, I have waived interest on all student loans held by federal government agencies and that will be until further notice,” Trump stated. “That’s a big thing for a lot of students who have been left in the middle right now.” 

As the coronavirus continues to wreak havoc on the world economy, many Americans struggle to keep up with student loan payments. For them, Trump did not address their real concern.

Twitter users scoffed at the idea of waiving interest but doing nothing about the payments themselves.

” Interest? Such a bold initiative,” Twitter user @jmzconsulting1 wrote.

https://twitter.com/tacobellpepsi/status/1238562242645258240
https://twitter.com/godisreal100/status/1238566094585151489
https://twitter.com/usclovr2/status/1238563265619218432

One user accused many of being biased to Trump and stated that everyone would be behind it if Bernie was pushing the initiative. That notion was met with a swift rebuttal.

“There wouldn’t be student loans under Bernie,” Twitter user @nortonhammer replied.

https://twitter.com/nortonhammer/status/1238569948064161797

But Twitter user @cimarron_kid tweeted a valid concern. He wondered whether the interest will be added back after the waiver period.

“The devils always in the details. When this all over the ‘waived’ interest amounts will still be on the note and have further interest assessed against them until they become due when the waiving period is over,” the Twitter user wrote. “No free lunch.”

The interest can indeed be added back later in a “process called capitalization of unpaid interest,” according to the New York Times, but the publication is still investigating whether this would be the case for the coronavirus loan interest.

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H/T: The Hill

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*First Published: Mar 15, 2020, 12:17 pm CDT