President Joe Biden (Photo by Alex Wong / Getty Images)
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You may not receive a stimulus check …and the same could happen with the cancellation of the student loan.
Here’s what you need to know.
Stimulus checks
If you received a first stimulus check and a second stimulus check, there is a high probability that you will receive a third stimulus check. However, after the House approved President Joe Biden’s $ 1.9 trillion stimulus package, which included a third stimulus control, something changed. Initially, the criteria for obtaining the third incentive check of $ 1,400 for individuals or $ 2,800 for married or accompanying persons were based on the same income threshold as the first two incentive checks: income of $ 75,000 for individuals, and $ 150,000 for married or married people. Then, in order to appease the moderate Democrats in the US Senate, who wanted more targeted stimulus controls, the income threshold was changed. Now, the income threshold has changed as follows:
The second check of the stimulus
- Individuals: $ 75,000 annual income (complete elimination at $ 100,000)
- Married or joint spinners: $ 100,000 annual revenue (complete elimination of $ 200,000)
Checking the third stimulus
- Individuals: $ 75,000 annual revenue (complete elimination at $ 80,000)
- Married or joint spinners: $ 100,000 annual income (complete elimination of $ 160,000)
right to Washington Post, this means that 17 million fewer Americans – including 12 million adults and 5 million children – will receive an incentive payment. As a result, people earning between $ 80,000 and $ 100,000, as well as married people or parents earning between $ 160,000 and $ 200,000, will not receive any incentive checks.
This could be bad news for student loan cancellation. Here’s why.
Will your student loans be canceled?
Will your student loans be canceled? You may be wondering what the new student loan incentive package means. Congress waived the cancellation of the student loan from the new incentive package and was also not included in the last incentive package. Now that stimulus controls have been reduced for 17 million Americans, you should expect the same to happen with student loan cancellations. This means that student loan cancellation could be limited in several ways. The current income threshold for student loan cancellation has been set at $ 125,000 for individuals. For example, Sen. Elizabeth Warren (D-MA) and Senate Majority Leader Chuck Schumer (D-NY) want to cancel student loans of up to $ 50,000 for executive borrowers. This would apply only to federal student loans and would be available only to borrowers with incomes below $ 125,000. Biden uses the same income threshold for his student loan plan for college without schooling. If Congress is willing to reduce incentive controls to be more targeted, you can expect student loan cancellation to be similarly limited.
The income threshold for the third stimulus control is already $ 50,000 lower than the income threshold for canceling the proposed student loan ($ 75,000 versus $ 125,000). Will progressive Democrats be able to justify a $ 50,000 higher income threshold to skeptical Republicans and moderate Democrats than the stimulus threshold? If Congress cancels student loans, forgiveness of student loans is likely to become a battle between them. Amount ($ 50,000 vs. $ 10,000 for example) and who qualifies ($ 75,000 annual revenue versus $ 125,000, for example). So, it is not as simple as the question of whether to cancel the student loan debt. This is just the first question. The bigger questions are how much the student loan debt is canceled and how directed the cancellation of the student loan will be. Some members of Congress want $ 2,000 incentive checks each month until the Covid-19 pandemic ends. If Congress approves additional stimulus controls, Republicans and moderate Democrats will raise objections to the widespread cancellation of the student loan – namely the cost. This could lead to more discussions about the purpose of forgiving student loans. As a result, millions of the 45 million student loan borrowers hoping to cancel student loans may not fulfill their wishes.
Grant student loans
If you have student loans, make sure you understand all of your student loan repayment options. As Congress debates the widespread forgiveness of student loans, it is unclear whether the forgiveness of student loans will come, how many will qualify, and who will qualify. Here are some potential options: