There may be a chance that qualifying Americans can have minimum of 10K student loan debt be forgiven. In the past few weeks, the COVID-19 pandemic has affected people from all across the globe. Not only are people are becoming extremely ill due to the deadly virus, but the virus has affected people’s livelihoods in other aspects. Many Americans worry about losing their jobs, their cars, their homes, businesses, and ultimately having no means of supporting themselves and their families. One of the biggest bills many Americans are concerned about is their student loans.
Senate Minority Leader Chuck Schumer, D-N.Y., and Sen. Elizabeth Warren, D-Mass., proposed last week that the federal government forgives $10,000 of student debt for each borrower. The proposal asks Congress to authorize the Department of Education to make the monthly payments for all federal loans, tax-free for borrowers. The proposal also calls for the suspension of interest capitalization, a minimum $10,000 debt relief payoff for all federal loan borrowers, and the suspension of all involuntary debt collections or wage garnishment for borrowers who have defaulted.
Earlier in March, the President has announced that the government would be waiving interest on federal student loans through the pandemic. And U.S. Department of Education Secretary Betsy DeVos announced on Friday that borrowers could pause their bills for at least 60 days in a “coronavirus forbearance.” However, these options weren’t deemed sufficient enough for the Democrats. Many believe these will not feasible for the average working American. The debt should be suspended so Americans will have a chance to recover and rebuild.
The plan is still up for debate with Congress.