Senate Passes $2 Trillion Emergency Package

Posted on March 25, 2020

Late Wednesday night the Senate passed, by a unanimous vote, the $2 trillion COVID-19 relief package (CARES Act).

It now goes to the House where votes are expected on Friday. Speaker of the House Nancy Pelosi (D-CA) has expressed support for the bill.

Analysis is forthcoming, however the full text of the bill is available here.

Department of Education Announces New Relief Measures

Posted on March 25, 2020

Today, US Secretary of Education Betsy DeVos announced the following new measures intended to relieve federal student loan borrowers amidst the COVID-19 national emergency.

The Department will halt collection actions and wage garnishments related to federal student loans for a 60 day period beginning March 13th, 2020. Private collection agencies have been requested to stop proactive collection efforts.
The Department will not request Treasury to withhold money from federal tax returns and social security payments.
The Department will refund $1.3 billion in offsets to more than 800,000 borrowers. This represents offsets which were in the process of being withheld as of March 13th, 2020.

These measures are in addition to previously announced steps; federal loan interest rates have been adjusted to 0%, as well as all borrowers have the option to halt payments for 60 days from March 13th, 2020 by contacting their loan servicer.

Third Supplemental Introduced in House

Posted on March 23, 2020March 23, 2020

A third COVID-19 supplemental appropriations bill as been introduced in the House. Among other things, the bill includes funding for key social services, K-12 schools, higher education institutions, and provisions for federal student loans. The bill also expands unemployment insurance and provides greater protections for workers with regards to COVID-19.

Some key funds included in the bill:

$50 billion to states for K-12 and higher education.
$300 million for National Endowment for the Humanities.
$100 million for National Science Foundation for research and related activities.
$99.5 million for Department of Energy Office of Science.

This bill is a counter-proposal to the Senate bill which is currently being negotiated.

The full text of the Take Responsibility for Workers and Families Act (HR 6379) is available here.

Senate Democrats Stall Vote on COVID-19 Package

Posted on March 23, 2020

Today Senate Democrats defeated a procedural vote on a $1.6 trillion COVID-19 spending package. Democrats seek to include additional provisions whereas Senate Republicans call for a quick vote. Negotiations continue with Senate and the White House. Full story at Politico.

Major Changes to Student Loans, K-12 Testing, Due to COVID-19

Posted on March 20, 2020

Today President Trump announced the below changes affecting the Department of Education as a result of COVID-19:

The Department of Education will not enforce standardized testing for K-12 institutions this school year.
Federal student loan borrowers may suspend payments for up to 60 days, retroactive from March 13th, 2020. The borrower must contact their loan servicer to make the change.
All federal student loan interest rates will be automatically set to 0% for the next 60 days.

The changes are designed to allow school districts to cope with long-term closures, as well as allow loan borrowers to offset financial hardships as a result of the COVID-19 national emergency.