The Senate's New Coronavirus Bill Will Extend Student Debt Relief Until September

Soon after days of deliberations and one stalled vote, the United States Senate passed a stimulus plan that will aim to support the American economy as it weathers the spread of the novel coronavirus, and the social distancing and self-isolation methods that entire states have put into place in a task to slow contagion rates. At $2 trillion, it's more than double the $831 billion stimulus bill which the Obama administration passed in 2009 and dwarfs the countless efforts made by the Bush administration soon after 9/11 and the housing crisis and subsequent market collapse of 2008.


While Trump is already touting the sheer size of this bill, it's worth keeping in mind that this pandemic is a unprecedented crisis: The problem is bigger, so the answer will certainly need to be bigger, too. At least 3 million people filed unemployment claims the week of March 16, which the New York Times points out is the largest collection of new claims the nation has seen in modern history. (The last record was 695,000 new claims in an individual week in October 1982, at the tail end of the 1981-1982 recession.) It's unclear how that number will change in the coming weeks, not least of all because plenty of folks are experiencing issues connecting with their state's unemployment office. That information might not directly resemble people who are self-employed and have had customers or gigs canceled, or who are still employed part-time and have saw a loss in working hours or pay. According to a poll from student advocacy sort Rise, 52 percent of college-aged respondents mentioned their work had been impacted as a result of the pandemic.


That's why the Senate bill, called the Coronavirus Aid, Relief, and Economic Security (CARES) Act, allocates around $250 billion to allocate one-time checks to American adults and their children, with some provisions. The checks will cap at $1,200 and will be based on the most recent tax filings: Those who make up to $75,000 as a solitary person qualify for the entire amount, while couples who make up to $150,000 will qualify for $2,400 total. Households with children will receive an extra $500 per child.


However that one-time check likely won't go far for a lot of people, who are worried about being out of work for the foreseeable future. To that effect, the Senate bill will supply an added $600 a week for people who have qualified for unemployment, for up to four months. Those advantages will extend to self-employed and part-time workers, which usually doesn't happen, and also gig workers and furloughed workers. Those funds are on top of whichever unemployment assistance is supplied for by state; in case if you've been impacted by a recent COVID-19 related layoff, you could click here for help on how to apply for benefits.


The bill also sets aside money for emergency financial aid to both colleges and students, who will receive at least half of the funds supplied to their institutions. The bill mandates that institutions use "no far less 15 than 50 percent of such funds to offer emergency financial aid grants to students for expenditures related to the disruption of campus operations due to coronavirus (including eligible charges under a student’s cost of attendance, like food, housing, course materials, technology, health care, and child care)."


This comes after several schools mandated that students move out of their dorms for the last of the semester, some days without supplying adequate messaging or support to international students or those without the immediate means to secure their way residence. An estimated 18 percent of students nationwide never have reliable internet or computer access at residence, and one in three students told Rise they right now lack access to a reliable source for healthy food.


While the bill will permit for up to six months' deferment on federal student cash advance payments, it does not allocate widescale student debt relief. Unlike the previous promise by the Department of Education, these federal cash advance deferments should kick in automatically, and last up until September 30. The bill also stipulates that interest will not accrue throughout this six-month period.


The Residence of Representatives has although to vote on the bill; they are set to cast votes on Friday (March 27). If the CARES Act passes, it will take at least a number of weeks for checks and other relief to begin rolling out to people. But a new month is fast approaching, and plenty of people are worried about paying rent on April 1. (Only one in three young people own their homes; the vast majority of people aged 25-30 rent.) Curbed notes that a couple of cities have issued eviction moratoriums, nevertheless not outright forgiveness, which means that renters may be vulnerable to eviction any time the grace period is up. As a result, folks are lobbying their state lawmakers to pass more comprehensive legislation, as well as rallying with each other to prepare mutual aid funds to help those in need.