Title: Economic and Student Loan Debt Relief Act of 2020
Policy area: Education

Summary:
Economic and Student Loan Debt Relief Act of 2020
This bill extends the suspension of payments on student loans held by the Department of Education (ED). It also generally allows for an exclusion from taxable income of employer payments of student loans.
Specifically, the bill requires ED to suspend all payments due on Federal Direct Loans and Federal Family Education Loans held by ED through December 31, 2020. (Currently, this suspension period ends on September 30, 2020). Normal payment obligations and interest accrual resume at the end of this period.
Additionally, ED must carry out a program, beginning on November 1, 2020, to provide at least six notices to borrowers that normal payment obligations will resume. (Currently, this program begins on August 1, 2020.)
The bill also generally provides a permanent exclusion from employee income, for income tax purposes, of employer payments of student loans. (Currently, this exclusion from income is only for payments of student loans made before January 1, 2021.)

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7114 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 7114

To extend and clarify relief to Federal student loan borrowers, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 4, 2020

  Mr. Stivers (for himself and Miss Rice of New York) introduced the 
 following bill; which was referred to the Committee on Education and 
Labor, and in addition to the Committee on Ways and Means, for a period 
    to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
To extend and clarify relief to Federal student loan borrowers, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic and Student Loan Debt 
Relief Act of 2020''.

SEC. 2. RELIEF FOR FEDERAL STUDENT LOAN BORROWERS.

    (a) Extension of Relief.--Section 3513(a) of the CARES Act (Public 
Law 116-136; 134 Stat. 281) is amended by striking ``September 30, 
2020'' and inserting ``December 31, 2020''.
    (b) Notice to Borrowers.--Section 3513(g)(2) of the CARES Act 
(Public Law 116-136; 134 Stat. 281) is amended by striking ``August 1, 
2020'' and inserting ``November 1, 2020''.
    (c) Resuming Repayment.--Section 3513 of the CARES Act (Public Law 
116-136; 134 Stat. 281) is further amended by adding at the end the 
following:
    ``(h) Resuming Repayment.--At the conclusion of the period in which 
the Secretary suspends payments on a loan under subsection (a)--
            ``(1) the loan shall enter or resume repayment status;
            ``(2) the borrower's normal payment obligations shall 
        resume;
            ``(3) beginning on the first day after the conclusion of 
        such period of suspension, interest shall accrue on the loan at 
        the applicable rate of interest in accordance with the terms 
        and conditions of the loan; and
            ``(4) interest that accrues on the loan after the 
        conclusion of such period shall be paid and capitalized (if 
        applicable) in accordance with the terms and conditions of the 
        loan.''.

SEC. 3. EXCLUSION FOR CERTAIN EMPLOYER PAYMENTS OF STUDENT LOANS.

    Subparagraph (B) of section 127(c)(1) of the Internal Revenue Code 
of 1986 (as amended by section 2206(a) of the CARES Act (Public Law 
116-136; 134 Stat. 281)) is amended by striking ``in the case of 
payments made before January 1, 2021,''.
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