Stimulus Relief Package Update Student Loans

4 a one month extension on deferments to jan.

Stimulus relief package update student loans. Now the bill will be sent to president donald trump to be signed into law. House democrats proposed a new 2 2 trillion stimulus package that includes 1 200 second stimulus checks and 600 weekly unemployment benefits. The relief bill was part of a larger 2 3 trillion dollar government spending bill.

4 2020 secretary devos again extended these student debt relief measures through jan. Biden extends student loan payment freeze. Secretary of education betsy devos announced on dec.

In many ways the new stimulus package is a net loss for student loan borrowers who were hoping for student loan relief or student loan forgiveness. Millions of americans breathed a sigh of relief monday night as congress passed a 900 billion stimulus bill that includes 600 checks and expanded unemployment benefits. Despite the stimulus deal s shortcomings on student loan relief the bill will nevertheless contain other important provisions including the following.

The cares act the 2 2 trillion stimulus package that congress passed in march focused on most borrowers with federal student loans regardless of the borrower s financial situation. Congress dropped student loan relief from the new stimulus package which means your federal student loan payments will resume on january 31 2021 interest will start accruing and student loan debt collection will commence. But the relief package.

The stimulus package won t extend the payment pause for student loan borrowers. People with student loan payments looming may not like the newest covid relief stimulus package. In december a group of bipartisan congressional leaders proposed extending the administrative forbearance that paused federal student loan payments set the 0 interest rate and paused collection activities until april 30 2021.

Tucked inside the new stimulus plan which is a. The 748 billion relief package does include a student loan deferment that would last. If no other action is taken 42 million borrowers will have to resume their payments in a little over a month.