The COVID-19 pandemic had a significant impact on the economy and especially on college students. Many college students lost their part-time and full-time jobs because of the pandemic. At that time, stimulus checks turned out to be the saviour.
A $1.9 trillion COVID-19 stimulus package was signed by President Joe Biden in which more college students were qualified for funds.
Are you wondering do college students get stimulus checks or not? You will get your answer right in this article.
Before that, let’s just understand what stimulus checks exactly are.
What Is A Stimulus Check?
Stimulus checks are direct payments made by the U.S. government to the citizens by paper check or through direct deposits.
It is an attempt made by the U.S. government to boost the economy at the time of economic distress or recession.
Stimulus checks are payments that are made to taxpayers to spur economic activity when the economy is going through a downturn.
Do College Students Get Stimulus Checks
If you are searching for the answer ‘Do college students get stimulus’, then your answer is here.
The answer is yes, college students do get stimulus checks, but it depends on specific eligibility criteria.
Most college students (dependents 17 years and older) don’t receive first stimulus checks and second stimulus checks because they do not qualify for the eligibility criteria.
Types Of Stimulus Checks
Here are a few stimulus checks here.
1. Monetary Stimulus
In monetary stimulus, interest rates are cut down to stimulate the economy.
It is an attempt made by the government to boost the economy by increasing the total amount of money in the economy and reducing the cost of accessing it.
The monetary policy mainly deals with changing the amount of money in the economy or the cost of borrowing money.
2. Fiscal Stimulus
In Fiscal stimulus government directly spends money to boost the economy.
As the government increases spending, there is a decrease in the unemployment rate, which will automatically counter the economic recession.
In fiscal stimulus, cash is provided by the government to individuals, companies, and industries which are going through an economic downturn in the form of direct subsidies, loans, or tax incentives.
3. Quantitative Easing
Quantitative easing reduces long-term interest rates and provides liquidity to the financial systems.
Quantitative easing is mainly used by central banks where central banks purchase certain financial assets like bonds and other financial means.
Eligibility Requirements To Get Stimulus
Following are some of the eligibility criteria for college students to get the stimulus.
- If you are a financially dependent college student, then the person who claims you on their income tax returns can get a stimulus check up to $1,400.
- If you are a financially independent college student, then you are eligible to qualify for a third stimulus check. Independent students who are qualified can receive stimulus checks directly, depending upon their income level.
- For the third stimulus, there are some criteria to be eligible for, like the income thresholds. For individuals, it should be $75,000, for the head of household, it should be $112,500; and for married or joint filers, it should be $150,000.
- If you are a college student and have lost your part-time or full-time job, then you may be eligible for unemployment insurance.
To understand the amount and requirements of unemployment insurance, you can contact your state’s unemployment office.
Size Of Stimulus Checks
According to CNBC, the size of stimulus checks for independent college students is as follows.
For individuals who are earning up to 75,000 USD per year and for couples who are earning up to 150,000 USD per year, the check amount will be 1,400 USD.
For individuals who are earning between 75,000 USD to 80,000 USD and for couples earning between 150,000 USD and 160,000 USD per year, the check amount will be 280 USD to less than 1,400 USD.
Those college students who are dependent will not receive stimulus checks separately from those received by their guardians.
Benefits Of Stimulus Checks To College Students
The following are the benefits of stimulus checks for college students:
- Increase in unemployment aid.
- Child tax credits are higher.
- Helps in emergency financial aid.
- Relief checks.
How Are Stimulus Checks Used By College Students?
Stimulus checks can be used by college students in the following ways:
- Students can use stimulus checks to spend on their expenses.
- Stimulus checks can be put into savings.
- They can spend it on their education.
- Stimulus checks can also be saved for retirement.
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Key Takeaways: Do College Students Get Stimulus
Stimulus checks are very helpful during an economic recession or economic downturn to spur the economy.
The eligibility requirements for stimulus checks are set differently by the government which means everyone is not qualified or eligible to receive them.
Monetary stimulus is the actions taken by the nation’s central banks to reduce the cost of borrowing by lowering interest rates whereas fiscal stimulus is the actions taken by the government which includes increasing public sector employment, providing subsidies and loans, etc.
How Does A stimulus check work?
Stimulus checks are sent by the government as a direct deposit to the bank account or through mail as a paper check or a debit card.
How much is the new stimulus check?
The new stimulus checks for Individuals is $1,400, for dependents is $1,400 and for married/joint filers it is $2,800.
What is covered under the stimulus package?
Stimulus checks, unemployment benefits, and child tax credits are covered under the stimulus package.
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