However, that provision could be extended because the legislation includes a trigger based on the country’s unemployment. House Democrats are scaling back their efforts to provide student debt relief. Other elements of the spending package have elicited some backlash. It includes money for states and local governments, another $1,200 stimulus check for Americans, and both more student debt relief and more money for higher education. The Heroes Act extends the student loan relief from the CARES Act for another year, pausing student loan payments until September 30th, 2021. Connect with friends faster than ever with the new Facebook app. © 2020 Forbes Media LLC. The Act also includes $10,000 in private student loan forgiveness. While the stimulus package includes $4 billion for student loans, the proposal does not include any plan to cancel student loans. Borrowers would be categorised as in dire financial straits if their monthly payments amounted to zero. Schumer, Murray, Brown, And Warren’s New Proposal Would Provide Immediate, Much-Needed Relief To Federal Student Loan Borrowers Through Minimum $10K In Student Loan Payments Why few 7-session stretches are better for the stock market. Warren Buffett calls the prospect of negative interest rates the 'most interesting question I've seen in economics.' I have approximately $10k in student loan ... and that was only a little bigger then the average monthly student loan payment. Student debt holders are “having to make choices between paying their student loan and paying the rent, those kinds of decisions,” Mr. Biden said at a news conference last month. I currently work at New America on federal higher education policy as a Senior Advisor for Policy and Strategy, where I strive to create a more equitable and accountable system of higher education. House Democrats scale back $10,000 student loan forgiveness measure in their coronavirus spending package because it cost too much Joseph Zeballos-Roig 15/05/2020 Pelosi Proposes $1,200 Stimulus Checks, $10,000 Student Loan Forgiveness, And Money For Colleges Wesley Whistle Senior Contributor Opinions expressed by Forbes Contributors are their own. For example, Senator Kamala Harris (D-CA) proposed monthly $2,000 payments, rather than a one time payment. But after the revision, debt forgiveness would be restricted for people who had been "economically distressed" on March 12. They are pitching it as Phase Four of coronavirus relief. “Using an executive order to forgive federal student loans will likely be met with a lawsuit and ... Forgiving Student Debt Isn’t a Great Stimulus Plan. Opinions expressed by Forbes Contributors are their own. Today, House Speaker Nancy Pelosi (D-CA) and House Democrats unveiled their newest coronavirus relief and stimulus package, referred to as the Heroes Act. Democrats like Sen. Elizabeth Warren had championed the full $US10,000 loan forgiveness measure when the House proposal was unveiled on Tuesday. 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Student loans can be a burden, and the current coronavirus pandemic is not making it any easier. Currently, the CARES Act that Congress approved in March suspended interest, payments, and collection on student loans through September 30, according to The Washington Post. Student Loan Forgiveness. Biden has proposed canceling $10K in federal student debt per borrower, however, progressives are pushing … According to Forbes, the cumulative total of federal student loan debt is more than $1.5 trillion in debt, which represents a … In particular, Democrats are trying to temporarily suspend a cap on the amount of state and local taxes that can be deducted from federal income taxes. The Democratic bill would extend those breaks until Sept. 2021. 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