Stimulus Bill Student Loan Deferment

Here are the things you should be prepared for when the student loan forbearance ends.

Stimulus bill student loan deferment. Both had been on the table during negotiations but eventually scrapped. The passage this week of the stimulus bill approved by congress preserves the tax free status of employer payments toward employee student loans through 2025 a marked difference from the year end expiration date included in the coronavirus aid relief and economic security cares act. Finally the cares act granted a reprieve to students paying off federal student loans by deferring payments on those loans through september 2020 suspending all interest.

The 748 billion relief package does include a student loan deferment that would last until april. For more information here s the latest status of stimulus negotiations and here s everything we. Student loan borrowers haven t had to make payments since march but that piece of federal pandemic relief is set to expire on december 31 unless president donald trump or congress act to.

An extension on federal student loan forbearance through april 30 2021 had been on the table in previous versions of the bill but lawmakers eliminated that provision in the final rounds of the discussions. A new stimulus package is close to becoming a bill as congress works on it including the second stimulus checks worth 600 for each eligible individual and a 300 per week unemployment insurance. There are two notable things missing from the bill.

Funding for local and regional governments and continued deferment of student loan payments. Student loan deferment. Included in the cares act was a forbearance for student loans.

The 2 trillion stimulus bill that president donald trump signed on friday allows federal student loan borrowers to get a break from their monthly payments through sept. No funding for local governments student loan deferment. Stimulus bill won t extend payment pause for student loan borrowers published mon dec 21 2020 3 18 pm est updated mon dec 21 2020 7 12 pm est annie nova anniereporter.