Can You Qualify for the COVID-19 Student 5 Loan Relief Act of 2020?
The dangers of COVID-19 are ever present in the minds of many. However, it is possible that these disease may bring about debt relief for student loans if the COVID-19 Student 5 Loan Relief Act of 2020 passes.
Finding relief from student debt is difficult today. Bankruptcy can eliminate many of your debts, but the loans you took out in college typically follow you around for the rest of your life until you pay them in full. The good news is that politicians are now focusing on student debt relief, and it may be possible in the near future. The COVID-19 Student 5 Loan Relief Act of 2020 provides assistance for some student debtors.
What is the COVID-19 Student 5 Loan Relief Act of 2020?
This bill specifically targets student debtors in an effort to provide financial relief. It would enable students who have been hurt by COVID-19 to file bankruptcy and do away with their college loans. Typically, student debt cannot be discharged, even during the bankruptcy process.
Does It Apply to Private Loans, Federal Loans, or Both?
The good news is that this bill would allow individuals to obtain relief from both private and federal loans.
What is the Time Frame to qualify?
The bill, if passed, offers a generous time frame extending from January 21, 2020 until sixty days after the pandemic emergency ends.
How to Qualify to Take Advantage of the COVID-19 Student 5 Loan Relief Act of 2020
What are the rules when it comes to qualifying for the benefits offered by the COVID-19 Student 5 Loan Relief Act of 2020? As with most laws and regulations, there are a few hurdles involved in order to qualify to receive the advantages of this student debt relief act.
To qualify for relief under the COVID-19 Student 5 Loan Relief Act of 2020, you must meet one or more of the following requirements:
- Your income is less than it was before the pandemic.
- Your family’s primary income earner died.
- You recently became permanently disabled.
Understanding the Income Limits in the COVID-19 Student 5 Loan Relief Act of 2020
Unfortunately, it isn’t enough for you to have experienced a reduction in your income. This relief act has three simple guidelines to see if you qualify using this requirement:
- If you make less than $75,000, you must have had a decline equal to 20% of your income.
- If you make between $75,000 and $125,000, your income needs to have dropped between 30% and 39%.
- If you make more than $125,000, you must have experienced a decrease of 40% in your income.
Each of these guidelines refers to the pre-taxed money you earned. Keep this fact in mind when you calculate your numbers.
Even if you file for a bankruptcy, your student debt looms over you like a hot air balloon gaining steam. Now that COVID-19 is disrupting employment for many individuals, you may find that it is even more difficult to meet your monthly obligation regarding your debts. If the COVID-19 Student 5 Loan Relief Act of 2020 comes into play, many students debtors can expect to find relief from their loans. If you’d like to get help with your debt management or simply learn more about your options, please contact our offices at your convenience.