Because of the current COVID 19 pandemic and the passing of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March of 2020, many people are wondering if student loans will also be forgiven in 2020. The CARES Act was an economic relief plan worth over $2 trillion that was designed to give an economic break to workers, small businesses, state and local governments, and some vulnerable industries so that they could stay afloat financially during the mandatory shutdown periods. Most people with low to moderate incomes also received a stimulus check for $1200. Although the CARES Act did not fully forgive student loans, it did give student borrowers some relief because it suspended federal loan payments until September 30, 2020 and also charged zero interest on these loans. It also stopped all garnishments for payment of these loans.
The Stimulus Bill and Student Loan Forgiveness
Not long after the passing of the CARES Act, a $484 economic stimulus bill called the Payment Protection Program Healthcare Enhancement Act was passed by the House of Representatives. The purpose of this bill is to increase testing for COVID 19 and to make better virus contact tracing possible as well as adding emergency funds to the healthcare system. Much of the bill is also designed to help small businesses keep running. However, forgiveness of student loans is not a feature of the stimulus bill, and no further relief is offered from it other than what already exists from the CARE Act. Various student loan forgiveness programs that are more comprehensive have been proposed by both House and Senate Democrats, but as of now, these are not yet a reality, so it is unlikely that student loans will be completely or significantly forgiven in the year 2020.
Call to Schedule a Consultation With a Minnesota Student Loan Forgiveness Lawyer Today
If you are interested in learning more about various solutions to student loan debt, call to schedule a consultation with a Minnesota student loan forgiveness lawyer today. The experienced legal professionals at the Hoverson Law Offices, P.A. have extensive resources to help you find an easier way to deal with student loan debt. We believe that new graduates should not be drowning in the financial burden of this kind of debt and we’re here to help you build a more secure financial future. Visit our website at hoversonlaw.com or give us a call at 612-349-2728 and let us give you financial and legal advice you can rely on.