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Paid leave, unemployment assistance: What the federal government is doing in response to the coronavirus pandemic

Trump announced Friday that the federal government is automatically waiving interest on federal student loans for the foreseeable future. The Department of Education clarified to the New York Times that this does not mean that payments will be reduced, but rather that the entire payment will go toward a borrower’s principal balance.

That will provide little relief to many borrowers now, unless their income falls dramatically, the Times reports. If borrowers need to put their loans into forbearance, or their loans are currently in forbearance, interest will not accrue. 

There are still many unknowns about this policy; CNBC Make It will update this story as more information becomes available.

If you are struggling with your finances, here are some steps to take now.

Check out: The best credit cards of 2020 could earn you over $1,000 in 5 years

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