Stimulus Checks & Student Loan Freezes: What You Need to Know
Nick explains the two part of the stimulus bill that directly impact you: The stimulus checks that most Americans will be receiving, and the federal student loan freeze, on both payments and interest.
The government passed a 2 trillion dollar stimulus bill to help the economy during the lock-downs. Most of this money went to hospitals, unemployment benefits, and company bailouts; but you get your cut as well!
American’s will be getting $1,200 if they file their taxes as single, not claimed as a dependent by parents, and make less than $75,000. If you made over $99,000 you won’t be receiving anything from the stimulus. For every $100 you make over $75,000, reduce the $1,200 amount by $5.
Couples will be receiving $2,400 if they make less than $150,000 if they file jointly. If they make over $198,000 they won’t receive anything. The same $5 reduction for every $100 over the lower limit applies.
Additionally you’ll receive $500 for every dependent under the age of 17 that you claimed on your taxes. Unfortunately, if you are between the ages 17-23 and your parents claim you as a dependent, you, and your family, won’t be receiving anything for you.
To calculate you income the government will look at your 2019 tax returns, if you haven’t yet filed they’ll check your 2018 ones.
Checks should be sent out between 3 and 6 weeks from now, and will be directly deposited in your bank account if you’ve authorized the IRS access for tax refunds.
Other than the stimulus check the government also froze required payments on federal student loans until September 30th. During this time your federal loans won’t accrue interest.
THIS DOES NOT APPLY FOR PRIVATE LOANS.
During this break from paying your student loans, use any discretionary income to pay off other debt with higher interest rates, such as credit cards.
You can still make payments towards your loans and this will directly reduce the principle amount so future interest payments will be less.
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