Biden is canceling up to $10K in student loans and all federal loans are paused until 12/31
Updated March 29, 2020
We are living through uncertain and unprecedented times. Many of us have been or will soon be impacted financially by the ongoing crisis. We want to be here to support you with resources and all the programs you can take advantage of.
Here is the update on resources for COVID-19:
The Internal Revenue Service (IRS) has extended the Federal Tax Filing Deadline for Individuals and Corporations to July 15th.
However, those taxpayers who may have tax refunds can still file now to get their refund check.
Source: IRS. https://www.irs.gov/newsroom/payment-deadline-extended-to-july-15-2020
This applies to federal loans only. For more information visit the CFPB: https://www.consumerfinance.gov/about-us/blog/what-you-need-to-know-about-student-loans-and-coronavirus-pandemic/
Cares Act. https://www.congress.gov/bill/116th-congress/senate-bill/3548/text#toc-id87B2A4774FCF4B66AE8F5EBB38CF64EB
Individuals who earn $75,000 in adjusted gross income or less would get direct payments $1,200 each. For every qualifying child age 16 or under, the payment will be an additional $500.
It phases out entirely at $99,000 for singles and $198,000 for couples without children.
Source: CNN and NYTimes
Qualifying income levels will be based on 2019 federal tax returns, if already filed, and otherwise on 2018 returns. They will use the bank information and mailing address of your 2018 or 2019 returns for direct deposit if you e-filed, otherwise you will receive a check.
Source: NBC News
President Trump and Treasury Secretary Mnuchin are still pushing to get the direct payments issued by April 6. Many experts think it will be most likely 2-3 months.
Keep checking irs.gov/coronavirus
Here is a helpful graphic from the Tax Foundation to explain how this works for single, married and dependents:
Source: Tax Foundation
Finally, our free app can help you organize your student debt during this time, sign up here.