The CARES Act Overview Part 4: Student Loans
This past Friday Congress passed the CARES Act which includes a number of individual, family and small business provisions. We are evaluating the legislation, so we can provide timely advice to our clients. The CARES Act includes over $350B of benefits to small business and self-employed individuals, as well as one-time recovery rebate payments to taxpayers, expanded unemployment, and more. The magnitude of the relief package requires careful study and quick action – there is no guarantee of how long the money will last.
Student Loan Relief
Principal and interest payments on all federal student loans waived through September 30th (and interest doesn’t accrue.
Employers can contribute up to $5,250 annually toward an employee’s student loan and it is not included in the employee’s income (2020 only – for now, otherwise why specify “annually”?).
Need help? Reach out to the Mainstreet Financial Planning team today with any CARES Act related questions you might have!
During this segment, we’ll be discussing how the CARES Act impacts Small Business owners and the self-employed.