Stimulus package falls short for many college students
By Alejandro Hernandez
Bridge Staff Writer
By Jessica Rodriguez
Director of Photography
Published Monday, May 4, 2020
On March 26, Congress passed a $2 trillion stimulus bill in response to the coronavirus pandemic. The CARES Act bill secured $1,200 for U.S. citizens ages 18 and older and $500 for every dependent child 16 years and younger as a stimulus payment in April.
While some received their checks through direct deposit, a large population still awaits theirs. Many college students became disappointed to find out they would not receive financial assistance through the stimulus. The bill did not guarantee a payment made for those claimed as a dependent on a federal tax return; this includes a significant number of college students. Even if these students are financially independent of their parents and filed their own taxes, their parents could still claim them.
According to the U.S. Department of Treasury, “The CARES Act provides for Economic Impact Payments to American households of up to $1,200 per adult for individuals whose income was less than $99,000 ( or $198,000 for joint filers) and $500 per child under 17 years old–or up to $3,400 for a family of four.” Thus, these young adults are left out: they are too old for the parents who claimed them to receive $500 for the claimed dependent and since they were claimed as a dependent, they do not qualify for the $1,200 stimulus payment.
Some of these young college students are part of the most disadvantaged populations in the country. Riled with student debt and college fees, many struggle to live on a weekly basis. A large percentage of college students work in service industry jobs, an industry hit hard by recent events, which led to many layoffs.
Sergio Martinez, double major in political science and history, said he was not eligible for the stimulus package since he is a permanent resident, a non-citizen with a Green Card or visa.
“I, unfortunately, was not eligible for the stimulus,” Martinez said. “Personally, my family was hit by [COVID-19] as one of my parents was furloughed and well, bills keep stacking up.”
He said although he was ineligible for the stimulus package, he plans to apply for the TAMIU CARES Grant, which is $9 million provided by the U.S. Department of Education to TAMIU. Half of those funds are earmarked to help students who suffered economic hardships due to COVID-19.
“I do plan on applying for the CARES Grant,” he said. “I hope to take online classes and the money would come in handy for small repairs at home and to pay the summer tuition. Should I get the grant, I would definitely use it to ‘fix some holes’ around the house, not fall behind on rent and reinvest it for summer classes.”
On the other hand, some TAMIU students received the stimulus check, but many believe a one-time payment is not enough to carry them throughout the summer. Many students have overdue bills to pay or family members to take care of.
Psychology major Javier Lopez said he was able to file as an independent and got the stimulus check after moving out of his parent’s house. Still, he plans to apply for the TAMIU grant.
“I am the only person that is working from my family, so everyone relies on me currently for bills and basic needs,” Lopez said. “I plan on [applying], but the grant asks for past due bills. I luckily am not in that situation, but I could definitely use the help because I have been managing by a thread.”
He continued, saying TAMIU should focus on the well being of students at this time. He explains that many students, such as himself, have taken on more hours at work to help their family members who lost their jobs. Now, more than ever, money is heavy on students’ minds.
“Depending on how everything turns out, if necessary, I am willing to take a semester off to financially stabilize myself,” Lopex said.
Currently, a bill introduced by Rep. Tim Ryan, D-Ohio, and Rep. Ro Khanna, D-Calif., known as the Emergency Money for The People Act might help those left out by the stimulus bill. It aims to give a supplemental $2,000 payment for at least six months to ensure financial stability to all U.S citizens ages 16 and up and $500 for each child, to a maximum of three. The new bill would provide payments to college students and adults with disabilities, even if claimed as a dependent. However, as the White House moves to reopen the country, chances of a new stimulus bill for the public could remain low.
A new stimulus package could mean the public would not have to return to work to pay expenses. Furthermore, supplementing state and local governments would also allow cities to extend lock-down periods, keeping businesses closed and people at home. To be sure, there is no evidence yet to support what additional lock-down time could do to the U.S. economy. As business continues to decline, so does the tax revenue from which these stimulus payments are funded.