The HEROES Act H.R. 6800 was recently proposed in Congress that finally purposes some student loan forgiveness for federal and private loans as “a result of the COVID-19 National Emergency.”
Private Student Loans
The legislation states,”(A) IN GENERAL.—Effective on the date of the enactment of this section, until the end of September 2021, the Secretary of the Treasury shall, for each borrower of a private education loan, pay the total amount due for such month on the loan, based on the payment plan selected by the borrower or the borrower’s loan status.
(B) LIMITATION ON PAYMENTS.—The maximum amount of aggregate payments that the Secretary of the Treasury may make under subparagraph (A) with respect to an individual borrower is $10,000.”
The bill also proposes that until September 2021 no capitalization of interest would occur.
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During the proposed payment period by the Treasury, no payments would be required from student-loan debtors.
Additionally, it is proposed that private student loans be reduced by $10,000 by the Secretary of the Treasury.
Federal Student Loans
The legislation proposes a refund of federal student loan payments made between March 13,202 and the date of enactment. No interest would accrue during the period covered by the HEROES Act the Treasury would make all federal student loan payments until September 30, 2021, or until “2 months after the national U–5 measure of labor underutilization shows initial signs of recovery.”
The extensive legislation provides additional relief for those holding student loans or who are subject to the withheld forgiveness for Corinthian Colleges or ITT Tech federal student loans.
Don’t Hold Your Breath
If you support this legislation that also includes other public support, you can always give your Congressional representatives a call and let them know you want them to pass the HEROES Act.
The legislation also proposes:
- Honors our heroes, by providing nearly $1 trillion to state, local, territorial and tribal governments who desperately need funds to pay vital workers like first responders, health workers, and teachers who keep us safe and are in danger of losing their jobs
- Establishes a Heroes’ Fund for essential workers, with $200 billion to ensure that essential workers who have risked their lives working during the pandemic receive hazard pay
- Supports testing, tracing and treatment, by providing another $75 billion for coronavirus testing, contact tracing and isolation measures, ensuring every American can access free coronavirus treatment, and supporting hospitals and providers
- Provides additional direct payments, cushioning the economic blow of the coronavirus crisis with a second round of more substantial economic impact payments of $1,200 per family member, up to $6,000 per household
- Protects payrolls, by enhancing the new employee retention tax credit that encourages employers to keep employees on payroll, allowing 60 million Americans to remain connected to their paychecks and benefits
- Ensures worker safety, by requiring OSHA to issue a strong, enforceable standard within seven days to require all workplaces to develop and implement infection control plans based on CDC expertise, and prevents employers from retaliating against workers who report infection control problems
- Supports small businesses and nonprofits, by strengthening the Payroll Protection Program to ensure that it reaches underserved communities, nonprofits of all sizes and types and responds flexibly to small businesses by providing $10 billion for Covid-19 emergency grants through the Economic Injury Disaster Loan program
- Preserves health coverage, by protecting Americans losing their employer-provided health insurance with COBRA subsidies to maintain their coverage and creating a special enrollment period in the ACA exchanges for uninsured Americans
- Extends unemployment benefits, ensuring weekly $600 federal unemployment payments through next January, providing a vital safety net for the record number of Americans who are unemployed
- Bolsters housing assistance, helping struggling families afford a safe place to live with $175 billion in new supports to assist renters and homeowners make monthly rent, mortgage and utility payments and other housing-related costs
- Strengthens food security, addressing rising hunger with a 15 percent increase to the maximum SNAP benefit and additional funding for nutrition programs that help families put food on the table
Why would Congress give the average person a break?