Lately, I’ve been getting a few questions about how the government’s recent stimulus bill will affect college students. Will students get the $1200 that people who make less than $75,000 per year will get? Will they get the $500 that children get?
A quick Google search led me to this FAQ article from the New York Times: https://www.nytimes.com/article/coronavirus-stimulus-package-questions-answers.html
Do college students get anything?
Not if anyone claims them as a dependent on a tax return. Usually, students under age 24 are dependents in the eyes of the taxing authorities if a parent pays for at least half of their expenses.
What I learned: for most college students, unfortunately, it sounds like you’re out of luck. “You can’t get a payment if someone claims you as a dependent, even if you’re an adult.” Note that it matters if you were a dependent on someone else’s taxes, not if you were dependent or independent on the FAFSA. I also didn’t realize that the $500 is for qualifying children age 16 or under. Sorry, college folks. For most of you, this stimulus bill doesn’t do much for you.
The part of the bill that is positively related to college is regarding student loans. If you are in repayment of student loans, the federal government is not requiring payments on many federal loans until September 30. Additionally, interest is not supposed to accrue on those loans in that time period.
Will my loan servicer charge me interest during the six-month period?The bill says that interest "shall not accrue" on the loan during the suspension period.
At the end of the suspension, keep a close eye on what your loan servicer does (or does not do) to put you back into your previous repayment mode. Servicer errors are common.
Regardless of all this stimulus package information and how it impacts you, I wish you all a happy and healthy rest of 2020.
Shea - ICAN Hiawatha Center
