Trump Just Announced Student Loan Payments Are Suspended Due to Coronavirus—Here's What You Should Know

President Donald Trump is giving people with student loans a break amid the coronavirus pandemic.

Secretary of Education Betsy DeVos announced Friday that the federal government would be waiving the interest on all student loans, which means that borrowers will be able to pause their payments without any financial penalties.

DeVos said in a statement that these are "anxious times" and that everyone "should be focused on staying safe and healthy, not worrying about their student loan balance growing." She also commended Trump for his "quick action on this issue."

The measure makes good on Trump's promise to provide student loan relief to millions of borrowers amid the COVID-19 pandemic, which is part of a larger strategy to mitigate the economic toll of the crisis. The virus has already infected approximately 15,000 people and killed at least 200 in the U.S., according to data from the Centers for Disease Control and Prevention as of Friday.

The president discussed the new guideline during a White House press briefing, telling reporters that it's "going to make a lot of students very happy."

"And we have more to come on student loans, more good news for the students. But that will come at a different time," Trump added.

Here's what you need to know about the measure.

How to Stop Payments

Borrowers have to request an "administrative forbearance" with their federal student loan servicers, according to the release put out by the Department of Education. The forbearance will allow those with loans to temporarily suspend payments.

To take advantage of the benefit, borrowers have to directly contact their lender either online or by phone. Trump said that his administration has given "strict instructions" to servicers on how to put this policy into place.

You can also re-adjust how much you're paying per month if you've had a significant change in income due to the coronavirus outbreak. In order to lower the monthly payment, the Department of Education suggests contacting the servicer directly.

How Long It Will Last

If you have a federal student loan, you can suspend payments for at least the next 60 days, though the president signaled that the time frame may be expanded if the outbreak continues.

"If we need more, we'll extend that period of time," Trump said on Friday.

According to the Education Department, the two-month time frame began on March 13. DeVos has ordered an automatic suspension of payments for anyone who is more than 31 days delinquent as of March 13.

What Else Is on the Horizon for Student Loans

Trump promised on Friday that there would be "more good news" for those with student loans and there are several proposals being discussed in Congress.

Senate Democrats are calling on the Education Department to cancel federal student loan payments altogether during the crisis. The plan, backed by Senators Chuck Schumer, Patty Murray, Sherrod Brown and Elizabeth Warren, would require the agency to make payments on behalf of borrowers. Then once the health emergency is over, the department would have to make an additional payment to each borrower to ensure they each received at least $10,000 in federal help during the epidemic.

"Last time our economy crashed, this country made a devastating mistake: we turned our backs on students and families to bail out the giant banks," Warren said in a statement. "Student loan borrowers—especially students of color—never fully recovered from that economic punch to the gut."