Donate Your CARES Act Student Loan Windfall
In the past 6 weeks, 30 million Americans have lost their jobs. The coronavirus crisis has particularly devastated domestic workers. According to an NDWA survey, 72% of these in-home workers, nannies, and house cleaners reported having lost all of their work by early April. And a horrifying 84% reported that their households were short on money for food and housing.
There’s a way we can help. Many of us have heard about the $1,200 stimulus checks being distributed through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act also suspends federal student loan payments through September 30. These six $0 monthly payments also count toward any student loan forgiveness program. For those of us enrolled in Public Service Loan Forgiveness, income-driven repayment, or other loan forgiveness plans, and who are otherwise financially comfortable, this provision could generate a financial windfall of thousands of dollars over six months.
We are asking those on track for federal loan forgiveness who have the capacity to donate this windfall to the domestic workers who need it. If you can’t do it for 6 months, do it for 3 months. If you can’t do it for 3 months, do it for one month. And if you can’t do it at all, please contribute by sharing the link.
All money received through this fund will go to the NDWA Coronavirus Care Fund. The NDWA provides $400 in emergency assistance per person, helping them to pay for rent, groceries, and necessities despite lost work.
Those of us who are receiving public service loan forgiveness joined our professions to serve the public. Let’s serve the public now.
Q&A:
Q: I want to give, but I don’t know if I qualify for federal loan forgiveness. What types of borrowers will receive this windfall?
Per the federal student aid website, suspended payments for borrowers on Income Driven Repayment (IDR) plans will count towards loan forgiveness. Additionally, borrowers with a Direct Loan, who “were on a qualifying repayment plan prior to the suspension, and work full-time for a qualifying employer during the suspension, will have these suspended payments count toward loan forgiveness.”
Consumer Finance also provides a great overview of how the provision will work.
Q: What about Public Service Loan Forgiveness? Will suspended payments count toward my 120 on-time payments for this program?
Yes! See above; as long as you were working full-time for a qualifying employer during this period, your $0 payments will count.
Q: Where can I go to check the status of my loans?
You can check the status of your loans here: https://myfedloan.org/borrowers/your-account/.
Q: Where can I go if I have other questions about the CARES Act and loan forgiveness?
The government has a great FAQ about the CARES Act and student loan forgiveness here: https://studentaid.gov/announcements-events/coronavirus.
More information about National Domestic Workers Alliance Inc: The National Domestic Workers Alliance (NDWA) is the nation's leading voice for dignity and fairness for the millions of domestic workers in the United States, most of whom are women. Founded in 2007, NDWA works for the respect, recognition, and inclusion in labor protections for domestic workers, including over 10,000 nannies, housekeepers, and caregivers for the elderly across the country.
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