Student Loans Missing From New Stimulus Bill—4 Reasons Why

Student Loans Missing From New Stimulus Bill—4 Reasons Why

The newest stimulus invoice does not embody student loan reduction.

Here’s what you must know.

Student Loans

Senate Republicans launched a scaled-back stimulus invoice, which doesn’t embody student loan reduction. While the stimulus invoice consists of unemployment advantages, listed below are 4 explanation why Republicans could have dropped student loan reduction from the most recent stimulus invoice.

1. President Trump already paused student loan funds

After Congress left Washington and not using a stimulus invoice, Trump paused federal student loan funds by December 31, 2020. You could also be questioning what does Trump’s govt order imply on your student loans. The pause applies solely to federal student loans owned by the U.S. Department of Education, and is just like the pause below his 60-day govt order from earlier this 12 months in addition to the Cares Act, which is the $2.2 trillion stimulus package deal that Congress handed in March. Trump additionally wrote in his memorandum to Secretary of Education Betsy DeVos that curiosity is not going to accrue on federal student loans by December 31. Effectively, Trump’s actions would pause funds and cease curiosity accrual for a further three months, as soon as the student loan advantages within the Cares Act expire on September 30, 2020. That mentioned, some debtors are confused concerning the specifics of this student loans govt order. However, Senate Republicans could have dropped student loan reduction from the brand new stimulus invoice as a result of they could imagine that the president’s govt motion sufficiently addresses student loans.


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