Trump said he was waiving federal student loan interest due to coronavirus

By Caroline Kelly and Sarah Westwood, CNN

(CNN) – President Donald Trump announced new measures to ease the burden on student loans on Friday universities and colleges across the country have closed in response to novel coronavirus pandemic.

“I have waived interest on all student loans held by federal government agencies, and it will be until further notice,” Trump said at a news conference. appearance in the rose garden, noting the number of schools that have sent students home amid the growing epidemic.

A spokesperson for the Department of Education said that under the new policy, any borrower with a federal loan – including those on income-based repayment and forbearance – will be granted interest relief. until the end of the temporary policy. The spokesperson added that the ministry does not know exactly how long the policy will be in effect.

The interest will be waived automatically, the spokesperson said, and the policy will take effect approximately next week, retroactive to Friday’s announcement by the president.

The news arrived at Trump’s coronavirus press conference on Friday, where he announced he was declare both a national emergency and invoke Stafford Law, which gives access to additional funding, according to a source close to its decision. Trump has highlighted a slew of new initiatives impacting several key federal agencies.

Emergency orders, Trump said, “will give broad new authority” to Health and Human Services Secretary Alex Azar.

Azar will be able “to forgo provisions in applicable laws and regulations to give doctors, hospitals – all hospitals – and healthcare providers maximum flexibility to respond to the virus,” Trump added.

In a statement Friday, Azar praised Trump’s statement for giving “the HHS significant powers to improve the ability of states and local communities to respond to the epidemic, including flexibility around Medicare and Medicaid rules.” .

“The entire Trump administration, including our leaders in HHS, identifies every flexibility we can offer and any obstacle we can remove to help those on the front lines protect Americans from this epidemic,” added Azar.

The declaration of emergency would also make new funding available and allow the Federal Emergency Management Agency to lead specific parts of the coronavirus response.

Further, the president said he had asked the Energy Secretary “to buy large amounts of crude oil for U.S. strategic reserves,” saying the move was “something that wouldn’t even have been done. possible a week ago ”.

Oil prices have fallen in recent days, especially as demand for jet fuel has plummeted as global travel slows dramatically amid various bans on international movement.

“So we are going to fill it, now is the right time to fill it,” Trump said of strategic crude oil reserves.

The-CNN-Wire
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