Washington, D.C. — Today, Sens. Chuck Schumer (D-NY), Patty Murray (D-WA), Sherrod Brown (D-OH), and Elizabeth Warren (D-MA) introduced a new plan to cancel a minimum of $10,000 in student loans to provide relief to borrowers amid the coronavirus national emergency declared by President Donald Trump last week. Under the proposal, the U.S. Department of Education would make monthly payments on all federal student loans, guaranteeing a $10,000 minimum loan payoff, and establish a three-month grace period for all borrowers after the termination of the national emergency declaration.
Ben Miller, vice president for Postsecondary Education at the Center for American Progress, released the following statement:
Many of the 45 million Americans with student loan debt are facing financial stress and worried about how they’ll make their monthly payments at a time when addressing basic needs must be their primary focus. This plan allays payment fears for millions of borrowers and provides immediate money into their pockets. We are particularly encouraged by the proposal to end collections on defaulted borrowers and forgive a minimum of $10,000 for all borrowers, which are absolutely crucial for making this policy equitable and would eliminate the debt of almost 16 million — or more than 1 in 3 — student loan borrowers. Congress should insist on its inclusion in the next coronavirus relief package and send it to President Trump’s desk as swiftly as possible.
For more information on this topic or to speak with an expert, please contact Colin Seeberger at [email protected] or 202-741-6292.
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