woman in college on computer

How Coronavirus is Impacting College Towns

woman in college on computer

Even in the era of a deadly pandemic, the excitement of college season hasn’t dwindled among students across the country. For freshman students, going away to college has been a dream for years. It's a vision promise...

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Even in the era of a deadly pandemic, the excitement of college season hasn’t dwindled among students across the country. For freshman students, going away to college has been a dream for years. It’s a vision promised to them after the long road to high school graduation. For returning students, a degree is the promise of a better future. Yet, the 2020 fall semester has been anything but a dream for many.

 

Increased COVID Cases on Campus

 

Projections released by PolicyLab at Children’s Hospital of Philadelphia (CHOP) in late August suggested that large Midwestern cities would enter the fall with weekly cases nearly 10 times the rate of infection as the spring in Europe. Meanwhile, schools in Alabama, California, and Georgia have already reported hundreds of positive cases in the first few weeks of the back to school season.

 

In fact, a New York Times conducted a survey of 1,600 American colleges and universities that included every four-year public institution, every private college that competes in NCAA sports, and others. They reported that 88,000 cases and 60 deaths had been reported since the pandemic began. Most of the deaths, it was revealed, were those of college employees.

 

Due to COVID concerns, many schools are opting for online courses or a blend of in-person and online courses. Fall sports have been postponed or cancelled altogether. The Big Ten announced on September 16 a return to college football beginning October 24. NCAA basketball will resume on November 25. 

 

The Financial Impact of COVID on Schools

 

Still, it isn’t just classes and sports that are threatened because of the virus.

 

According to reports by NPR, at least 20% of universities are putting students back in classrooms for in-person classes this fall as COVID-19 cases surge across the country. 16% of schools are offering a blend of in-person and online experiences. The reason for that, it is reported, is often financial for schools.

 

While universities charge for tuition, dining, and room and board, among other fees, some schools – particularly small, private institutions – can only manage to be profitable when enrollment is high. College athletic programs can be a huge draw for new students and sports lovers. However, when playing seasons aren’t promised, enrollment may be lower. Safety concerns from parents and students alike may lead to lower enrollment as well.

 

For many colleges, in-person students are the lifeline to staying in business. For small college towns in rural locations, students may be the lifeline for the city’s economy. This year, COVID may not just be affecting student learning, but the wellbeing of entire communities as well.

 

What will all of this mean for the future of universities and students? Projections suggest that colleges may move to virtual-first experiences and enhanced outdoor safety protocols to bring students back to dorms and sporting events. Students may have the ability in the future to opt for a number of in-person learning hours per semester, with the rest being virtual. In the meantime, stay tuned for information from your university to see what changes may develop this school year.

President Trump giving thumbs up at convention

What Trump’s Executive Order Could Mean for Your 2020 Student Loans

President Trump giving thumbs up at convention

Student Loan Deferment Under the CARES Act

In March of this year, the U.S. federal government passed the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act. This legislature included many benefits, including a s...

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Student Loan Deferment Under the CARES Act

In March of this year, the U.S. federal government passed the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act. This legislature included many benefits, including a stimulus payment and deferment of student loan payments and 0% interest until September 30th.

 

When the CARES Act expired on July 31, many of its benefits expired, too. Starting August 1, the race was on in Congress to pass a new law that would extend benefits and help keep Americans float. No agreement was found before Congress went on their late summer break. That meant millions of Americans were left out in the cold until they return to deliberate after Labor Day in September.

 

Trump’s Executive Order on Student Loan Payment Relief

On August 8, Trump released a series of executive orders meant to help bridge the gap. Among them was an order to extend student loan deferment until December 31, 2020.

 

Read the full executive order on student loan payment relief on the White House website.

 

Under CARES, federal loan repayments were suspended with 0% interest rates through September 30th. Students who owe money can still repay (if you are a student and you can afford to keep making payments, you should take advantage as payments are directed 100% to your principal loan amount). However, if you’ve been furloughed, laid off, or otherwise don’t have income, you don’t have to worry.

 

That is, of course, until September 30th. Once that date comes, these benefits will expire. Trump’s executive order on student loan payments now extends this benefit.

 

What’s in the Executive Order on Student Loan Payments?

Student loan payments are deferred with 0% interest until December 31, 2020. If you choose to continue making payments, you can. It’s also worth noting that the executive order does not include student loan forgiveness.

Remember that this may change. The second stimulus proposals that were in discussion before Congress went on break may include new student loan relief that could override the order. That will likely be decided in September.

 

What Does the Executive Order Do?

An executive order is a mandate passed by the President. Unlike other laws, Congress does not have to approve, and they can’t easily revoke it. As long as the order does not break any laws, it is considered a lawful order. But this doesn’t mean it will go into effect right away. The Secretary of State, Betsy DeVos, is responsible for taking action on the order. The order doesn’t state how she should go about putting the order into effect. If she chooses to, she can fight back against the order in court to prevent implementing it.

 

School can be stressful, with or without worrying about student loan payments. Read our tips on dealing with stress from doctors in this blog post.

How Can I Learn More About the Executive Order?

Here are a few helpful articles that can help you explore this topic:

Forbes: Student Loans Are Paused – Some Borrowers Are Confused

CNBC: Trump extended federal student loan relief—here’s what financial experts say you should do if you qualify

Bankrate: Trump’s executive orders extend student loan relief, with some exceptions