This Friday, March 13th, the Trump Administration said it would temporarily waive student loan interest on payments due to the economic hardship of the COVID-19 virus.
Earlier this week, Treasury Secretary Steve Mnuchin told reporters about an upcoming plan to help boost the economy. Regarding the suspension of student loan payments, Mnuchin said, “I can tell you that’s on our list of 50 different items we’re bringing to the president for a decision. The president is all about action, action, action.”
Growing Debt Looms
Educational debt has surpassed both credit card and auto debt in the United States. And with the average student loan bill approaching $400 a month, it is no surprise that student loan payments are weighing on the minds of borrowers across the country.
To complicate matters, universities and colleges have started to shut down classes and utilize online instruction to avoid large gatherings of people. While this might excite some students initially, it will be a challenge for others with unforeseen health and travel costs.
Undoubtedly students and their families also are purchasing supplies and goods in wake of news events and announcements. Relieving students of this interest payment helps in this time, but many students were hoping for the entire payment to be suspended.
Working from Home
Technology and start-up companies have longed bragged about letting employees work from home. Now, it is becoming a requirement for some firms because of COVID-19. Even large companies like Facebook and GM are asking their employees to work from home, if possible. The aim is simple: limit the spread of the virus. But where does this leave sick or worried workers that don’t have an option to work from home? That remains to be determined.