Congress is currently on vacation, but will resume negotiations for a second aid package on July 20, and a new bill can be signed in early August to send millions of Americans a second stimulus check to help them get through. this crisis. While this may sound like good news to many, it is not for those expecting student loan forgiveness.
Congress will likely decide on the details of the next stimulus package, including the possibility of a second stimulus check, before August 7. With the CARES Act, student loan payments were paused without interest until September 30 and did not include any forgiveness.
Democrats have asked to pay off student loan debts of $ 10,000 for each borrower. For example, If 45 million student loan borrowers received $ 10,000 of student loan forgiveness, the total cost would be $ 450 billion.
Some in Congress have proposed extending the suspension of student loan repayment for another year. Many are concerned about the uncertainty of what the economy will look like in the coming year, especially as some states are seeing big spikes in the number of Covid-19 cases.
Extending the suspension would provide continuous relief for those in need and free up cash for others to put into the economy. The HEROES Act, which was passed by the House of Representatives, would extend the payment of the student loan and the suspension of interest for another year, until September 30, 2021.
The HEROES Act was called ‘Dead on arrival’ by the Republican-controlled Senate, and until Congress passes a second aid package, everyone will know whether the student loan payments will extend for one year or end on September 30.
