COVID-19 Causes Interest on Federally Held Student Loans to Be Waived

On Friday, March 13, 2020, President Donald Trump announced that he is waiving interest on all federally held student loans in an attempt to lessen the financial strain on students and graduates. According to President Trump, his COVID-19 emergency declaration is currently in effect “until further notice.” For those who are affected by the high costs involved with interest rates on their student loans, this new announcement brings a strong, yet temporary, sense of relief.

These new changes in the federal student loan policy come during a time when many students and members of the workforce are struggling financially and with their education. Although the hope is for a swift recovery, the current situation has highlighted what has already been a growing problem in the United States.

Unlike COVID-19, the issue of the burden of student loans is not new. The ZIPO movement has been advocating and leading the movement for zero interest student loans. Eliminating the interest on student loans makes payments smaller so that borrowers can pay the principal down faster. This practice also benefits the country since college and trade school graduates are shown to earn higher incomes that bring in more taxes. Without having to pay so much for their student loans, borrowers can focus on building careers that bolster the U.S. economy.

Although there is not anything good about COVID-19, it is possible to use this harrowing time to bring the past and current issues faced by student loan borrowers into sharper focus. Waiving interest on student loans may be a temporary measure, but it does not have to be. The ZIPO movement is dedicated to making zero interest loans a permanent fixture in American life, and anyone who sees the benefits of keeping this up can join the movement. Making a difference in the lives of millions of borrowers is as simple as joining the ZIPO movement to raise awareness about a better option for managing student debt.

We need your help to make all student loans interest free, so sign up to be a ZIPO Activist today.

For more information call Chris Szablowski 908-310-5916