The recent stimulus bill includes a section on student loans that makes student loan forgiveness tax-free through the end of 2025. This tax treatment applies to both federal and private student loans. Prior to this, the only program that offered this benefit was the Public Service Loan Forgiveness (PSLF) program.
Also know, does the new stimulus bill include federal student loans?
The American Rescue Plan Act makes student debt forgiveness tax-free until January 1, 2026. Significantly, the tax exemption under this law covers direct federal student loans, Federal Family Education Loans (FFELs), and private student loans.
Accordingly, how much is the Cares Act payment for Students 2021? Most adults will receive a one-time payment up to $1,400 along with an additional $1,400 for each dependent (now including college students). See below for details on who qualifies. Colleges and universities will receive $40 billion. At least half of the funding must be allocated to support students in financial need.
Likewise, people ask, will you get a stimulus check if you owe student loan debt?
Federal Student Loan Debt: No
Your stimulus payment won’t be used to offset student loan debt if it’s a federal loan.