On this page, you'll find proposals to improve or modify the process by which students borrow and repay their loans.
Sponsor: Rep. Luria [D-VA]
NASFAA Summary & Analysis: This bill would increase the amount of loan forgiveness and loan cancellation available to teachers. This bill increases the amount of loan debt ED would forgive for teachers from $5,000 to $15,000 after the fifth complete school year of teaching. In addition, for teachers in mathematics, science, or special education, ED would increase the loan forgiveness from 17,500 to 30,000.
Sponsor: Rep. Langevin [D-RI]
NASFAA Summary & Analysis: This bill would allow a parent whose child develops a total and permanent disability to qualify for student loan discharge. Currently, parents are allowed to discharge federal student loans if their child dies, but not if their child develops a total and permanent disability.
Sponsor: Rep. Price [D-NC]
Sponsor: Sen. Warner [D-VA]
NASFAA Summary & Analysis: This bill would authorize borrowers who have received a joint consolidation loan to apply to receive a separate Federal Direct Consolidation Loan.
Sponsor: Rep. Maloney [D-NY]
NASFAA Summary & Analysis: This bill would establish temporary programs to provide both federal and private student loan forgiveness for certain frontline healthcare workers. It would direct the Department of Education to forgive the outstanding balance due on federal student loans for these borrowers. It would further direct the Department of the Treasury to repay in full the outstanding balance due on private student loans for these borrowers.
Sponsor: Rep. Pocan [D-WI]
NASFAA Summary & Analysis: This bill would allow federal student loan borrowers to refinance their loans when interest rates are reduced.
Sponsor: Sen. Braun [R-IN]
NASFAA Summary & Analysis: This bill would eliminate origination fees for federal student loans.
Sponsor: Rep. Lawson [D-FL]
NASFAA Summary & 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.
Sponsor: Sen. Burr [R-NC]
NASFAA Summary & Analysis: The bill would give new student loan borrowers the option between enrolling in a fixed, 10-year standard repayment plan and a single income-driven repayment (IDR) plan. The annual repayment amount would be 10 percent of the portion of discretionary income that is less than $25,000, plus 15 percent of any remaining discretionary income. The $25,000 "bend point," as it is coined in the bill, would be adjusted annually for inflation based on the Consumer Price Index. For married individuals, if both are repaying their student loans under the plan, the amount would be calculated individually using each spouse's loan amount and half of their combined income. The monthly payment on all covered loans would then be one-twelfth of the annual amount. Under the simplified IDR plan proposed in the bill, borrowers would have their remaining debt canceled after 20 years of payments or economic hardship deferment if the original principal balance of the loans did not exceed the maximum amount allowable for independent borrowers; or after 25 years of payments or economic hardship deferment if the original principal balance loans did exceed the maximum limit. The legislation ensures borrowers would never have to pay more than 15 percent of their discretionary income for their monthly student loan payments.
Sponsor: Rep. Foster [D-IL]
NASFAA Summary & 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.
Sponsor: Sen. Warner [D-VA]
NASFAA Summary & 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.
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.
Sponsor: Rep. Harder [D-CA]
Sponsor: Sen. Feinstein [D-CA]
NASFAA Summary & Analysis: This bill amends the Higher Education Act requiring the Department of Education to allow healthcare professionals who conduct full-time work for nonprofits to qualify for the PSLF program even if they're not directly employed by a nonprofit organization.
Sponsor: Sen. Rubio [R-FL]
Sponsor: Rep. Ross [D-NC]
NASFAA Summary & 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.
Sponsor: Rep. Courtney [D-CT]
Cosponsors: 18 (18D; 0R)
NASFAA Summary & 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 of the national health emergency.
Sponsor: Rep. Krishnamoorthi [D-IL]
NASFAA Summary & 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.
Publication Date: 7/12/2021