Stimulus Bill Student Loan Interest

The stimulus bill expected to be approved by congress on monday won t extend the freeze on payments and interest for federal student loan borrowers.

Stimulus bill student loan interest. That s not a typo. According to federal reserve data americans hold about 1 7 trillion in student loan debt. House democrats had previously passed stimulus legislation in may providing for an extension of the current moratorium on student loan payments to september 2021 as well as 10 000 in student.

Previously trump extended student loan relief. Now the stimulus will last through the first days of joe biden s presidency. 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 passed in march provides a tax incentive for your employer to help pay your student loans. Your employer can make tax free. Student borrowers who graduated in 2019 from public or private nonprofit colleges held on average.

This means that the existing student loan relief from the cares act stimulus package will not expire on december 31 2020 as previously expected. The forthcoming coronavirus relief bill includes no loan forgiveness and no extension of the payment pause and interest waiver says student loan expert mark kantrowitz the previous proposal. Still the bill if passed would provide desperately needed relief to millions of student loan borrowers.

Covid 19 student loan relief was set to expire at year s end.