Erasing $10,000 in student loan debt sought by Senate Democrats
Senate Democrats are calling for debt forgiveness of at least $10,000 for all federally held student loan borrowers under coronavirus relief legislation.
The federal government would assume student debt payments for the duration of the national coronavirus emergency, including direct federal loans and federal loans for family education held by the federal government, under the proposal unveiled on Thursday.
Democrats are also pushing to end wage garnishment, tax refunds and Social Security benefits to collect student debt payments, and they support a pause in interest capitalization. They also proposed to codify in law the President donald trumpThe order to waive interest on student debt held by the federal government was announced last week.
The plan was presented by the Senate Minority Leader chuck schumer (NY), member of the Health, Education, Labor and Pensions Committee Patty Murray (Washington) and Sens. Elizabeth Warren (Massachusetts), and Sherrod Brown (Ohio).
Crushing economic uncertainty
“The coronavirus outbreak has brought overwhelming economic uncertainty, and students and borrowers need targeted and timely payment burden relief,” Schumer said in a statement.
“Our new proposal would immediately cancel monthly payments and give students and borrowers a student loan refund of at least $10,000. We must act now to help ease the growing financial pressure on students and families across the country.
The Democrats’ plan would count loan repayments made by the federal government in loan forgiveness plans as well as loan rehabilitation. And the debt relief would be tax exempt.
To contact the reporter on this story: Andrew Kreighbaum at [email protected]