If you’re wondering can student loan debt take your stimulus check, you’re not alone. During the coronavirus pandemic, millions of Americans received one-time federal payments to help with financial strain. But if you’re struggling with student loan debt, it’s critical to know how your stimulus money is affected.

Here’s what you need to know about student loan debt and stimulus checks, how the CARES Act applies to federal loans, and what you to do if you have private student loans.

CARES Act and Student Loan Debt Relief

The CARES Act introduced emergency federal assistance, including a national stimulus check and student loan relieffor federal borrowers.

What the CARES Act Includes:

  • Federal student loan payments paused
  • 0% interest from March 13 to September 30
  • Suspension of collection on defaulted loans
  • $0 payments still count toward loan forgiveness

This means your federal student loan debt is temporarily frozen—payments, interest, and collections are all on hold during the covered months.

Can Student Loan Debt Take Your Stimulus Check?

Here’s the good news:
Federal student loan debt will not take your stimulus check under the CARES Act. The law specifically protects your stimulus payment from being garnished for overdue federal student loans.

However, if you owe other types of debt—like private student loans, past-due child support, or other government debts—your check may still be at risk.

How This Affects You During the Pandemic

Since federal student loan payments are paused and set to $0, you’re not required to use your stimulus money on student loan payments. Better yet, these $0 payments still count toward your forgiveness program if you’re enrolled in an income-driven repayment (IDR) plan.

If you’re in a stable financial position, this is actually a great time to make voluntary payments, as no interest is accruing. Every dollar you pay now goes directly toward your loan principal, helping reduce your total debt faster.

Keep in mind: you may not receive a monthly statement during this time, so reach out to your loan servicer if you choose to make payments manually.

What About Private Student Loans?

Private student loans are not covered by the CARES Act. Unfortunately, this means:

  • No automatic pause on payments
  • No interest suspension
  • No guarantee of protection from garnishment

Still, you may be eligible for other forms of student loan relief at the state or local level. Many lenders are offering temporary forbearance or hardship programs, so contact your private lender to explore your options.

Get Help With Student Loan Debt and Relief Options

If you’re worried that student loan debt could take your stimulus check, especially from private loans or defaulted accounts, you don’t have to face it alone.

Hope Credit offers professional guidance to protect your stimulus funds and provide customized solutions for student debt relief.

CALL FOR A FREE QUOTE: (760) 916-9313
Contact Us: HopeCredit.net/contact-us