The deal would give $30.9 billion to the Education Department and a penalty-free pause in payments to student loan borrowers
The massive stimulus deal reached by senators would provide billions of dollars more in emergency aid for schools compared to the Republican version circulated earlier this week, while seeking to give student loan borrowers a pause in payments without penalty.
The bill would provide $30.9 billion to the Education Department, including an “Education Stabilization Fund,” with specific allocations to support elementary and secondary schools as well as higher education institutions, according to a Senate Appropriations Committee summary.
Among its key provisions, the bill would suspend monthly payments on federally-held student loans through September, with no interest accruing during that suspension, but continue to count these months towards requirements for federal loan forgiveness programs.
The bill did not include a proposal from leading Senate Democrats for $10,000 in outright debt reduction.
The bill does, however, seek to address calls by colleges and states for direct aid, which was not included in the initial GOP draft bill.
Under the stabilization fund, $3 billion would be set aside for emergency relief funds that governors could use for schools most severely affected by the coronavirus outbreak. Another $13.5 billion would go towards elementary and secondary school relief funding, most of which would be designated in the form of subgrants to individual schools.
For the original article click here: https://www.rollcall.com/2020/03/25/covid-19-stimulus-directs-aid-to-schools-suspends-student-loan-payments/
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