The move will affect most borrowers—an estimated 92% of student loans are owned by the U.S. Department of Education.
Student borrowers whose loans are held by the federal government will temporarily have their interest waived, President Trump announced Friday.
The president announced the change during a press conference in which he declared a national emergency regarding the coronavirus outbreak; he did not offer any other details regarding the interest freeze.
More than 45 million Americans currently owe a total of $1.6 trillion in student loan debt, and interest payments make up a sizable chunk of the total amount they pay each month.
Trump’s waiver of interest will affect most borrowers, as an estimated 92% of student loans are owned by the U.S. Department of Education.
The president did not indicate whether he would take any steps to help borrowers whose loans are held by private institutions.