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What the CARES Act means for college students

SAMUEL LEWANDOWSKI

Special to The Leader

President Trump just signed a $2 trillion bill aimed at providing relief for those impacted by coronavirus.

As businesses close nationwide, and a record 3.3 million Americans file for unemployment, according to the Department of Labor, Congress worked to pass the CARES Act.

According to NPR, the legislation is aimed at speeding “relief across the American economy… during an unprecedented freeze on the majority of American life.” 

The source reports that groups like individuals, small businesses and big corporations are subject to various forms of relief.

Students with existing federal debt can expect “temporary student loan relief.”

CARES Act | Congress.gov

The source reports that “all loan and interest payments will be deferred through Sept. 30 without penalty to the borrower for all federally owned student loans.”

According to Forbes, students that drop out mid-semester due to the pandemic may be subject to a cancelation in federal loans “for the current academic term.” 

Additionally, the Department of Education has also “waived the normal rules for the return of ‘unearned’ federal student aid, such as the Federal Pell Grant, if a student withdraws because of the coronavirus pandemic.”

“If a student drops out of college, the subsidized Stafford loans and Pell Grants received during the academic term will be excluded from their respective duration limits.”

The DEA has also “issued guidance to colleges that students who have been affected by the coronavirus pandemic may appeal for more financial aid.”

According to NPR, the bill also allows “schools to turn unused work-study funds into supplemental grants and continue paying work-study wages while schools are suspended.”

Funding for various universities and institutions in areas such as the arts is also included. 

While part of the bill includes a “one-time cash payment of $1,200,” Forbes states that one must not “be a dependent of another taxpayer” in order to qualify for this check. 

The Internal Revenue Service defines a “dependent” as a “qualifying child” or “relative.”

A “qualifying child,” according to the IRS, is an individual “under the age of 19 or under age 24 if a full-time student”– which disqualifies many college students. 

As such, many students, such as senior political science student Sydney Mulkey, are upset with the legislation.

“I personally am so fed up with our government,” said Mulkey. “The stimulus package gives more money to corporations than it does for American citizens. That in and of itself shows you where the American political system’s priorities are.”

Others, such as fellow political science student and participant in the SUNY Brockport Washington D.C. program Rachel Skeirik also expressed disappointment in our government.  

“Washington has been slow in decision making in terms of policy,” said Skeirik. “Congress knew they would have to come around to making a bill like this, but what did they do? Ran to pull money from the stock market to prepare themselves financially rather than be proactive in helping constituents. This virus truly highlights the corruption in the political sphere.”

Skeirk said the relief package is necessary, but believes it is lacking in certain aspects. 

Political science student and fellow member of the Washington D.C. program Cristian Rodriguez agreed with Skeirk and Mulkey.

“I think that it’s a good start,” said Rodriguez. “But I hate the idea of giving $500 billion to corporations when people need help so desperately. I think that college students will be the most affected by COVID-19 and are receiving virtually no help, especially those who are dependents.”

Rodriguez said that he believes Governor Cuomo should look into other forms of relief, such as freezing rent and mortgages, as well as cable, internet and phone bills in order to boost the effectiveness of the $1,200 relief check. 

“We will probably need another stimulus in the coming weeks though,” said Rodriguez, “$1,200 just does not cut it for people in New York City, Long Island and other urban areas.”

Rodriguez said that, despite his reservations, he believes CARES has many strengths in that it provides relief to families and helps hospitals and small businesses. 

Seth Meyer, another political science student, also expressed excitement for the bill. 

“Hopefully that will help a lot of people stay fed until they can get back to work and also help to prevent a stagnant economy,” said Meyer. “I’m also happy to hear about unemployment benefits expanding to self-employed individuals, and I also think the pause of student loan payment collection will help relieve millions of Americans of undue stress so they can focus on staying safe and healthy.”

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