Author: Artem Hihach
Federal assistance programs are specially created initiatives by the government to enhance the lives and well-being of the United States residents.Â
Today, we’ll discuss the latest updates on the American Federal Financial Assistance Programs.
Aid to American Families and Workers
Families faced several difficulties as a result of the COVID-19 pandemic, accompanied by economic catastrophe. To ensure that United States citizens are less affected, The Treasury Department is assisting individuals and their families with several aids programs, including:
- Economic Impact Payments
The Treasury Department, the Bureau of Fiscal Service, and the Internal Revenue Service (IRS) quickly distributed two rounds of direct relief payments, while the third round is being distributed to the Americans.
- Unemployment Compensation
To aid those who lost their jobs during the COVID-19 pandemic, the American Rescue Plan extended employment support beginning in March 2021 and waived some federal taxes on unemployment compensation.
- Child Tax Credit
The American Rescue Plan raised and expanded the Child Tax Credit to further aid families with kids.
- Emergency Rental Assistance
The Emergency Rental Assistance program provides funds to government agencies to assist households that had issues paying their rent and utility bills.
Mental Health Services for Veterans
The new VA programs offer Mental Health Services for different mental issues, including treatment for drug addiction disorders, PTSD, military sexual trauma, and significant mental disease.
To be eligible for Mental Health Services, you must be:
- Enrolled in the VA medical system (Basic Medical Package for Veterans).
- Having a discharge status other than dishonorable (individuals with undesirable, bad conduct, and other sorts of dishonorable discharges may qualify for VA benefits in some situations).
You can get immediate access to free Veterans Mental Health Services by doing the following:
- Call or visit any VA medical center.
- Find a VA health care facility near you.
- During clinic hours, call or go into any Vet CenterÂ
Income-Driven Repayment and Public Service Loan Forgiveness Programs
The US Department of Education announced various adjustments and updates that will bring income-driven repayment (IDR) borrowers closer to forgiveness. Borrower account changes include a one-time correction of IDR payment counters to address past mist.
Regardless of payments made, loan type, or repayment plan, the ED will make a one-time modification to borrower accounts that will count time toward IDR forgiveness, including any months in which the borrower is in repayment status.
Check out the eligibility below:
- 12 consecutive months of forbearance or 36 months cumulative forbearance toward IDR and PSLF forgiveness;
- Any borrower with loans that have been in payment for at least 20 or 25 years will be eligible for automatic forgiveness.
- If you have commercially owned FFEL loans, you can only benefit from the IDR account adjustment if you consolidate before the department finishes implementing these adjustments, which is expected to be no earlier than January 1, 2023.
- If you have made eligible payments that surpass the forgiveness limits (20 or 25 years), you will be refunded the difference.
Federal Student Aid and COVID-19 Emergency Program
The United States Department of Education (ED) extended the student loan payment suspension until August 31, 2022, on April 6, 2022.
The pause includes the following loan relief measures for those who qualify.
- a pause in loan payments
- an interest rate of 0%
In the meantime, you can contact your loan servicer to get an estimate of your loan and due date.
Conclusion
In this article, we shed light on some of the updates of the government assistance program. If you are a student, veteran, parent, worker, or unemployed, there is assistance in place for you.Â
