(Excerpts from the Wall Street Journal)

• Congress passed the $1.9 trillion Covid-19 relief legislation Wednesday, which provides about $40 billion for higher education including provisions for financial aid and student loan forgiveness.
• At least 50% of the total funds each institution receives must go directly to students for emergency financial aid.
• Institutions are directed to give priority to students with exceptional financial needs.
• However, it is still not clear whether noncitizens, such as international students or those in the Deferred Action for Childhood Arrivals (DACA) program, will qualify.
• Students can use the funds from this legislation to cover any component of the cost of their attendance, as well as any emergency costs that have arisen due to the coronavirus, including tuition, food, housing, healthcare, mental healthcare, and child care, says Megan Coval, the vice president of policy and federal relations at the National Association of Student Financial Aid Administrators.
• The stimulus legislation means any student debt forgiven after Dec. 31, 2020, and before Jan. 1, 2026, won’t be taxed. Federal law typically treats any forgiven debt as taxable income.