|Democrats’ partisan $3 trillion bill put before the House last week ignored the massive support for student loan relief achieved by Republicans in the CARES Act.
Republicans support helping students and recent graduates nationwide ease student loan burdens and providing financial assistance during this cash-flow crisis. Here’s what we’ve done:
- STUDENTS CAN GET UP TO $5,250 IN LOAN REPAYMENTS TAX-FREE FROM EMPLOYERS. How this works: If a worker receives student loan forgiveness benefits through their employer, they typically pay taxes on those payments out of each paycheck. Now, through September 30th or until that $5,250 limit is reached, the worker pays no taxes; they will get to take home more from each paycheck while the employer continues to make payments on their loans.
- PAUSED FEDERAL STUDENT LOAN PAYMENTS: The CARES Act also put a pause on federal student loan payments. Until September 30th, Americans are not required to make payments on their federal student loans and those loans are not collecting interest.
The best way to help our students and recent graduates is to help folks get back to work and to ensuring businesses can keep their workers employed. The Speaker’spartisan bill, unfortunately, doesn’t deliver on either of those goals.
Want to read more on the fight against Coronavirus? Read our Coronavirus Bulletin here which contains our extensive FAQ about recent federal actions.
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