Recruit: Rep. Courtney [D-CT]
Cosponsors: 18 (18D; 0R)
NASFAA Bottom line & Analysis: This bill would expand the current COVID-19 borrower relief provisions to all student loan borrowers, including Perkins loans, FFEL loans held by private companies as well as Health Professions and Nursing loans. The current relief includes payment and interest suspension. The bill would also lengthen the period of relief until 30 days after the end title loan in Somerville of the national health emergency.
H.Roentgen.251 – Public-service Love Because of Financing Forgiveness Work
Sponsor: Rep. Krishnamoorthi [D-IL]
NASFAA Summation & Analysis: This bill would allow borrowers eligible for and enrolled in the Public Service Loan Forgiveness program to have a portion of their loans forgiven at different intervals dependent on the amount of eligible monthly payments they’ve made. The first forgiveness of 10 percent of the borrowers balance would come after 48 monthly payments, 20 percent after 72 monthly payments, and 50 percent after 96 monthly payments. The borrower would have to be actively employed in the PSLF eligible job when receiving the forgiveness, and be employed at an eligible PSLF job when the payments had been made. Borrowers who take advantage of these allowances would still be eligible to have their loans fully forgiven under the PSLF program as it stands after 10 years.
*NEW* S.3658 – Citizen Studies Deferred Interest (REDI) Act
Sponsor: Sen. Rosen [D-NV]
Cosponsors: 1 (0D; 1R)
NASFAA Summary & Analysis: This bill would allow borrowers in a medical or dental residency program to have the interest and payments on their student loans deferred.
*NEW* H.R.6749 – Clean Record by way of Cost Act of 2022
Sponsor: Rep. Ross [D-NC]
Cosponsors: 11 (11D; 0R)
NASFAA Summary & Analysis: This bill would remove the record of default on a borrower’s credit history upon total repayment of the full amount due.
*NEW* H.R.6708 – Student loan Rescue Work
Sponsor: Rep. Gonzalez [D-TX]
NASFAA Conclusion & Analysis: This bill would require the Department of Education to forgive a maximum of $25,000 for Federal student loan borrowers. The forgiven amount would be tax free.
H.Roentgen.6466 – Education loan Rehab and you will Credit score Improve Act out of 2022
Sponsor: Rep. Williams [D-GA]
Cosponsors: 18 (18D; 0R)
NASFAA Bottom line & Analysis: This bill would not only require the removal of the record of default from a borrower’s credit history report once they have rehabilitated their loans, but would require the removal of all adverse credit history related to the loan’s initial defaulted status.
H.Roentgen.6424 – Higher ED Act
Sponsor: Rep. DeFazio [D-OR]
NASFAA Summary & Analysis: This bill would reform the current federal loan program through a multitude of programs, including, reinstating federal subsidized loans to borrowers in graduate and professional programs and allowing borrowers to discharge their federal loans if they file for bankruptcy. The bill would also allow borrowers to refinance their federal and/or private student loans and include adjunct faculty in those eligible for public service loan forgiveness (PSLF). The PSLF program would also be amended to allow for annual cancellation of 10% of the total interest and principal for those who completed 12 months of eligible work and payments.
H.Roentgen.6125 – Zero Twice Debt for Crisis Survivors Act out of 2021
Sponsor: Rep. Carter [D-LA]
NASFAA Summation & Analysis: This bill would authorize the Secretary of Education to cancel outstanding student loan debt for Small Business Administration disaster loan borrowers as a result of the COVID-19 pandemic or a natural disaster. The amount of student loan debt cancelled would not exceed the amount of the SBA disaster loan.