On Wednesday, the Senate introduced a $2 trillion stimulus package to bail out the government as the United States is ravaged by the coronavirus (COVID-19). The virus is currently sweeping the country, which has just surpassed every other country with its number of active cases, and most states at this point have passed measures where only essential businesses are allowed to remain open. This has put a lot of people out of work, either temporarily or permanently as businesses shutter their doors to try and stop the spread of the virus.
With that in mind, many people are without a job and without a steady income. The unemployment offices have seen more cases than ever before in United States history as people scramble to find a way to pay rent, mortgages and other various bills. This, of course, includes student loan payments.
Luckily, through the stimulus package, there has been a tenet added by the federal government to pause student loan payments for the next few months as America digs itself out of the coronavirus hole its found itself in. It will provide those paying back student loans a break from payments until September 30. Any interest that would have been accrued in that period will also be waived. The most important thing to keep in mind is that this will only apply to student loans that were acquired through the federal government, not ones that were acquired through private loan companies. So make sure you know who your provider is and what the exact rules around this stimulus package contains for you.
Another good part of the stimulus package is that it also won’t negatively affect your credit score if you push off paying your loans in this way. Of course, you’ll want to make sure you regularly check your credit score to make sure there aren’t any discrepancies popping up that seem unfamiliar. If that does happen, you will need to push back on the creditors to make sure you fix the issues popping up and are able to get your credit score more accurately represented. It’s integral to make sure you stay on top of this because unfortunately they credit agencies won’t just go through your account and fix it for you. You’ll need to make sure you continuously push back.
There are additional benefits to the stimulus package as well. The unemployment section will benefit those who are contract only employees or full time freelancers who might have seen all their business shrivel up during the pandemic. Additionally, it extends the period of time that you’ll get unemployment for and it will also give you the additional $600 per week on top of the regular state regulated unemployment rates. Many businesses are temporarily laying off employees to cut business costs, which allows the employees to become eligible for unemployment in the first place.
Anyone who chooses to leave their job willingly at this time, even if it’s because they’re scared that they are at risk but still have to go to work, won’t be able to apply for unemployment through the stimulus package.
Image via Monkey & Markets.
