H.R.2034 – Income-Determined Student loan Forgiveness Act
Sponsor: Rep. Lawson [D-FL]
NASFAA Conclusion & Analysis: This bill would direct the Secretary of Education to forgive the balance of some federal student loans for eligible borrowers. Borrowers who filed a tax return for the most recent tax year, had an eligible loan in repayment, is employed, or had recent employment prior to the pandemic, and makes less than $100,000 if single, or $200,000 if married, would be eligible to receive forgiveness of their loan balance. The bill also stipulates that any forgiveness received would not be taxable.
H.R.1633 – Public service Mortgage Forgiveness Inclusion Work out-of 2021
Sponsor: Rep. Foster [D-IL]
NASFAA Conclusion & Analysis: This bill would allow borrowers who would be eligible for PSLF but who were enrolled in a non eligible repayment plan, to have the first 60 monthly payments made under a graduated repayment or extended repayment plan to become qualifying payments under the PSLF. The bill does stipulate that borrowers must transfer to an eligible repayment plan, such as an income-based or standard repayment plan, for the remaining 60 monthly payments made under the PSLF program.
S.603 – Coronavirus Disaster Education loan Refinancing Act
Sponsor: Sen. Warner [D-VA]
NASFAA Conclusion & Analysis: This bill would establish a refinancing program for federal direct and FFEL student loans. The new interest rate for a undergraduate unsubsidized or Stafford loans would equal to the lowest yield on the 10-year Treasury note in the preceding 6 months plus 2.05 percent; graduate unsubsidized or Stafford loans would be equal to the lowest yield on the 10-year Treasury note in the preceding 6 months plus 3.6 percent; and PLUS loans would be equal to the lowest yield on the 10-year Treasury note in the preceding six months plus 4.6 percent. The bill also requires ED to establish eligibility requirements for the refinancing program based on income or debt-to-income ratio.
H.R.1586 – Student loan Reform Work
Sponsor: Rep. Perry [R-PA]
NASFAA Summary & Analysis: This bill would create a program that would allow institutions of higher education to cosign all federal loans made to students during an academic year.
H.Roentgen.1133/S.311 – Finishing Doc Shortages Act
Sponsor: Rep. Harder [D-CA]
Sponsor: Sen. Feinstein [D-CA]
NASFAA Sumends the better Degree Act requiring the new Department regarding Education to allow health care professionals who conduct complete-date work with nonprofits so you can qualify for the new PSLF program also if they’re not directly used by an effective nonprofit business.
S.210/H.R.1372 – Securing Operate Act
Sponsor: Sen. Rubio [R-FL]
Sponsor: Rep. Ross [D-NC]
NASFAA Conclusion & Analysis: This bill would prevent states from suspending, revoking or denying state professional licenses solely due to borrowers being in default on their federal student loans.
H.R.394 – COVID–19 Education loan Rescue Extension Operate
Sponsor: Rep. Courtney [D-CT]
Cosponsors: 18 (18D; 0R)
NASFAA Realization & 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 easy money payday loan Decatur 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 of the national health emergency.
H.R.251 – Public-service Enjoy Compliment of Loan Forgiveness Operate
Sponsor: Rep. Krishnamoorthi [D-IL]
NASFAA Realization & 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.