What The New Stimulus Package Could Mean For Your Student Loans And

The new stimulus package says this about student loans and student loan cancellation. Here’s what you need to know — and what it means for you. The new, $1.9 trillion stimulus package that President Joe Biden proposed doesn’t include any student loan cancellation. The stimulus plan instead focuses on other policy priorities like $1,400 stimulus checks and $400 a week unemployment insurance. Senate Republicans have proposed a separate $618 billion stimulus package — about a third the size of Biden’s stimulus plan — that also excludes student loan cancellation and offers $1,000 stimulus checks as a response to the Covid-19 pandemic. So, what does this all mean for student loan cancellation? Biden wants Congress to cancel student loans immediately. Biden also has a comprehensive plan for student loans. Under his proposal, student loan borrowers would get $10,000 of student loan forgiveness in response to the Covid-19 pandemic. The operative word in this statement is “Congress,” meaning that the legislative branch, not the president through executive order, will be tasked with student loan cancellation. It’s still possible that Congress passes student loan cancellation in the stimulus package. However, there are several roadblocks. First, Republicans don’t support widescale student loan cancellation. Second, Biden’s stimulus proposal doesn’t include student loan forgiveness. Third, Congress dropped student loan cancellation from the last stimulus package. While Senate Majority Leader Chuck Schumer (D-NY) says student loan cancellation is a top priority, Schumer has focused on pushing a $50,000 student loan cancellation plan on Biden. For example, Schumer tweeted at Biden — a fellow Democrat — to cancel student loans, even though Biden said he’s unlikely to do so and wants Congress to act instead. Stimulus checks and student loan cancellation don’t seem to have much in common. The former is extra money; the latter is debt forgiveness. However, the proposals in Congress for stimulus checks — and the ensuing legislative dance — shed light on how Congress may operate during the first two years of the Biden administration. The $2,000 stimulus checks may be bad news for student loan cancellation. Democrats control the White House and Congress. While the new congressional term is only weeks old, Republicans, as the minority party, will continue to be vociferous. Senate Minority Leader Mitch McConnell (R-KY) will be as active as minority leader as he was as majority leader. Expect a student loans showdown. For example, Republicans proposed two changes to stimulus checks in the new stimulus package: smaller stimulus checks ($1,000 stimulus checks) and lower income threshold ($50,000 for individuals and $100,000 for married or joint filers). Why? Republicans want to limit federal spending and target economic relief to those who need it most. Not everyone may get student loan forgiveness. All data is taken from the source: http://forbes.com Article Link: https://www.forbes.com/sites/zackfrie... #student #newsreporter #newstodaymsnbc #usanewstoday #cnnnewstoday #newstodayheadlines #