Why is stimulus being withheld for student loans-does that help economy?
economic stimulus cannot be achieved by the government returning money to itself.
The money is not going to the government. They didn’t give you the loan, they only guaranteed it. They do have an interest in making sure your student loan gets paid.
How does this help the economy? Your stimulus money is going to the bank that holds your loan. This gives them more money that they can loan out to other companies or individual. These companies/people can then use the money for what ever purpose they need it for. Thus, even though you did not receive your stimulus check, you are still doing your share helping the economy.
