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Student Loan Debt Relief Act of 2019

USA116th CongressS-2235| Senate 
| Updated: 7/23/2019
Elizabeth Warren

Elizabeth Warren

Democratic Senator

Massachusetts

Cosponsors (2)
Edward J. Markey (Democratic)Sherrod Brown (Democratic)

Finance Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
Student Loan Debt Relief Act of 2019 This bill establishes programs to cancel certain student loan debt and refinance student loans. First, the bill requires the Department of Education (ED) to automatically discharge (i.e., repay or cancel) up to $50,000 of outstanding student loan debt for each qualified borrower. Borrowers with an adjusted gross income of $100,000 or less, based on the most recent tax year, may receive the maximum loan cancellation. Borrowers with an adjusted gross income above $100,000 may receive partial loan cancellation. Members of Congress are not eligible to receive loan cancellation. Further, the bill outlines the method of loan discharge, and excludes loan cancellation from taxable income. It also requires ED to automatically place each federal student loan borrower in administrative forbearance for the one-year period in which ED carries out the cancellation of student loans. During this period, payments are not due, interest does not accrue, and ED may not pursue debt collection activities (e.g., wage garnishments). Next, the bill requires ED to carry out student loan refinancing programs for those student loans that exist after the loan cancellation period. Specifically, it directs ED to automatically refinance federal student loans at the lower interest rates offered to new federal borrowers in the 2016-2017 school year. It also allows borrowers to convert their private student loans to federal student loans, thereby allowing such borrowers to qualify for loan cancellation. It also makes student loans dischargeable in bankruptcy proceedings. Finally, the bill specifies notification requirements.
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Timeline
Jul 23, 2019
Introduced in Senate
Jul 23, 2019
Read twice and referred to the Committee on Finance.
Jun 4, 2020

Latest Companion Bill Action

HR 116-7114
Introduced in House
  • July 23, 2019
    Introduced in Senate


  • July 23, 2019
    Read twice and referred to the Committee on Finance.


  • June 4, 2020

    Latest Companion Bill Action

    HR 116-7114
    Introduced in House

Education

Related Bills

  • HR 116-3887: Student Loan Debt Relief Act of 2019
BankruptcyCongressional oversightConsumer creditDebt collectionEmergency medical services and trauma careFirst responders and emergency personnelGovernment employee pay, benefits, personnel managementGovernment information and archivesGovernment lending and loan guaranteesHigher educationIncome tax exclusionInterest, dividends, interest ratesLaw enforcement officersLawyers and legal servicesMilitary personnel and dependentsSocial work, volunteer service, charitable organizationsStudent aid and college costsTeaching, teachers, curriculaWages and earnings

Student Loan Debt Relief Act of 2019

USA116th CongressS-2235| Senate 
| Updated: 7/23/2019
Student Loan Debt Relief Act of 2019 This bill establishes programs to cancel certain student loan debt and refinance student loans. First, the bill requires the Department of Education (ED) to automatically discharge (i.e., repay or cancel) up to $50,000 of outstanding student loan debt for each qualified borrower. Borrowers with an adjusted gross income of $100,000 or less, based on the most recent tax year, may receive the maximum loan cancellation. Borrowers with an adjusted gross income above $100,000 may receive partial loan cancellation. Members of Congress are not eligible to receive loan cancellation. Further, the bill outlines the method of loan discharge, and excludes loan cancellation from taxable income. It also requires ED to automatically place each federal student loan borrower in administrative forbearance for the one-year period in which ED carries out the cancellation of student loans. During this period, payments are not due, interest does not accrue, and ED may not pursue debt collection activities (e.g., wage garnishments). Next, the bill requires ED to carry out student loan refinancing programs for those student loans that exist after the loan cancellation period. Specifically, it directs ED to automatically refinance federal student loans at the lower interest rates offered to new federal borrowers in the 2016-2017 school year. It also allows borrowers to convert their private student loans to federal student loans, thereby allowing such borrowers to qualify for loan cancellation. It also makes student loans dischargeable in bankruptcy proceedings. Finally, the bill specifies notification requirements.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline
Jul 23, 2019
Introduced in Senate
Jul 23, 2019
Read twice and referred to the Committee on Finance.
Jun 4, 2020

Latest Companion Bill Action

HR 116-7114
Introduced in House
  • July 23, 2019
    Introduced in Senate


  • July 23, 2019
    Read twice and referred to the Committee on Finance.


  • June 4, 2020

    Latest Companion Bill Action

    HR 116-7114
    Introduced in House
Elizabeth Warren

Elizabeth Warren

Democratic Senator

Massachusetts

Cosponsors (2)
Edward J. Markey (Democratic)Sherrod Brown (Democratic)

Finance Committee

Education

Related Bills

  • HR 116-3887: Student Loan Debt Relief Act of 2019
  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
BankruptcyCongressional oversightConsumer creditDebt collectionEmergency medical services and trauma careFirst responders and emergency personnelGovernment employee pay, benefits, personnel managementGovernment information and archivesGovernment lending and loan guaranteesHigher educationIncome tax exclusionInterest, dividends, interest ratesLaw enforcement officersLawyers and legal servicesMilitary personnel and dependentsSocial work, volunteer service, charitable organizationsStudent aid and college costsTeaching, teachers, curriculaWages and earnings