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Originally Published: Mar 16, 2020
Originally Published: Mar 16, 2020 Last Updated: Mar 20, 2020 6 min read
Money; Getty Images

The Trump Administration has waived interest on federal student loans in an effort to help alleviate economic hardships brought on by the spread of the new coronavirus.

The move came after some Democratic senators had proposed suspending all monthly student loan payments for six months as part of a broader economic relief package.

It also sent officials at the U.S. Department of Education scrambling to figure out how to put such a policy in place, while at least one financial aid expert is questioning whether a president actually has the authority to waive interest without approval from Congress.

Here's what we know about how it will work.

Which loans qualify?

All federal student loans, which includes Direct Stafford loans (subsidized and unsubsidized), Direct Parent and Graduate PLUS loans, and Direct Consolidation loans.