Author: Lisa Lopez
The Federal Financial Assistance Programs are constantly changing, and it can be hard to keep up with the latest updates. However, it is essential to stay informed about the programs to take advantage of the benefits they offer.
Today, we will be discussing the overview of the most popular financial assistance programs in the United States so that you can stay up to date.
COVID-19 Student Loan Relief
President Joe Biden has announced an extension to the student loan payment suspension. The payment has been extended till August 31, 2022. This contains all defaulted Federal Family Education Loan Program loans. For example:
- The interest owed on payments will be deducted from your principal balance.
- Interest rates will no longer accumulate
- If you are qualified, you do not need to contact your loan servicer to receive these benefits.
- Late fees will not be charged.
American Families and Workers Assistance
As a result of the COVID-19 pandemic, public health crisis, and the ensuing economic disaster, families have faced several challenges. To help the United States Citizens, the Treasury Department is doing its best to ensure families prosper and thrive both at work and home. Recently, the government parastatal made some changes to their programs. These include:
Child Tax Credit
To help families who care for children, the American Rescue Plan increased and expanded the Child Tax Credit.
Compensation for Unemployment
To help those who lost their jobs because of the COVID-19 disaster, the American Rescue Plan extended employment support starting from March 2021 and waived some federal taxes on unemployment compensation.
Emergency Rental Assistance
The Emergency Rental Assistance program pays concern agencies to help families who are unable to pay their rent or utility bills.
Payments for Economic Impact
During the COVID-19 crisis, the Treasury Department, the Bureau of Fiscal Service, and the Internal Revenue Service (IRS) quickly assigned three rounds of direct relief payments, and payments from the third round are being distributed to the United States citizens.
Federal Loan Payment Forbearance
Borrowers of federal student loans seeking PSLF are not required to make payments until the extended automatic forbearance expires. Those months of nonpayment will count towards the 120 payments required to qualify for PSLF if you are working full-time for an eligible employer.
In other words, if you haven’t made any payment since March 2020 and won’t make another until September 2022, you are still 29 months away from being debt-free.
Mental Health Assistance Services for Veterans
The new VA programs include Mental Health Services for a wide range of mental health issues, including treatment for substance addiction disorders, PTSD, military sexual trauma, and severe mental illness.
To benefit from the Mental Health Assistance program, you must have a discharge status other than dishonorable, and be enrolled in the VA medical system (Basic Medical Package for Veterans).
Conclusion
We have detailed all the program upgrades that will benefit all US citizens. If you are unemployed, a United States citizen, or a veteran, there is a benefit waiting for you. Kindly read through to understand how you can benefit from it.