House Representatives Ayanna Pressley and Ilhan Omar are proposing to cancel student debt with new legislation aimed at helping borrowers adversely affected by the coronavirus, or COVID-19.The legislation, called the Student Debt Emergency Relief Act, proposes the cancellation of at least $30,000 in outstanding debt, tax-free, and proposes that the Education Department "Immediately assume responsibility" for the monthly payments of borrowers who hold federal loans while suspending involuntary collections or garnishments of wages or federal income tax returns amid the crisis.
"We must prioritize debt cancellation for the 45 million student loan borrowers who are struggling to pay off their debt during this difficult time."
ED has officially offered two options for borrowers at present: The department has dropped interest rates on student loans automatically to 0% for at least the next 60 days, and those who are having real difficulty with their loans can request interest-free forbearance from their servicer for at least two months - and require no documentation to receive it.
According to ED, more than 3.2 million federal student loans are more than 31 days delinquent.
Presently, there are more than 43 million Americans with $1.5 trillion in student loan debt.
"We failed to address student debt in the last recession and we cannot afford to make this same mistake again," Seth Frotman, former student loan ombudsman at the Consumer Financial Protection Bureau, added in a statement.
"Student loan companies are shutting their doors and turning off their phones in response to the coronavirus pandemic, cutting off borrowers from access to critical protections .....
https://www.yahoo.com/finance/news/house-democrats-cancel-student-debt-coronavirus-153039320.html
"We must prioritize debt cancellation for the 45 million student loan borrowers who are struggling to pay off their debt during this difficult time."
ED has officially offered two options for borrowers at present: The department has dropped interest rates on student loans automatically to 0% for at least the next 60 days, and those who are having real difficulty with their loans can request interest-free forbearance from their servicer for at least two months - and require no documentation to receive it.
According to ED, more than 3.2 million federal student loans are more than 31 days delinquent.
Presently, there are more than 43 million Americans with $1.5 trillion in student loan debt.
"We failed to address student debt in the last recession and we cannot afford to make this same mistake again," Seth Frotman, former student loan ombudsman at the Consumer Financial Protection Bureau, added in a statement.
"Student loan companies are shutting their doors and turning off their phones in response to the coronavirus pandemic, cutting off borrowers from access to critical protections .....
https://www.yahoo.com/finance/news/house-democrats-cancel-student-debt-coronavirus-153039320.html
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