Student Loan Debt Relief Act of 2019

Bill: 116-hr-3887
Sponsor: Rep. Clyburn, James E. [D-SC-6]
Introduced: 2019-07-23 in the House
Policy area: Education
Subjects: Bankruptcy
Congressional oversight
Consumer credit
Debt collection
Emergency medical services and trauma care
First responders and emergency personnel
Government employee pay, benefits, personnel management
Government information and archives
Government lending and loan guarantees
Higher education
Income tax exclusion
Interest, dividends, interest rates
Law enforcement officers
Lawyers and legal services
Military personnel and dependents
Social work, volunteer service, charitable organizations
Student aid and college costs
Teaching, teachers, curricula
Wages and earnings

Summary:
action_date: 2019-07-23
text: 

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.


Legislative actions:
action_date: 2019-08-12
text: Referred to the Subcommittee on Antitrust, Commercial, and Administrative Law.
action_date: 2019-07-23
text: Referred to the Committee on Education and Labor, and in addition to the Committees on Ways and Means, and the Judiciary, 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.
action_date: 2019-07-23
text: Referred to the Committee on Education and Labor, and in addition to the Committees on Ways and Means, and the Judiciary, 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.
action_date: 2019-07-23
text: Referred to the Committee on Education and Labor, and in addition to the Committees on Ways and Means, and the Judiciary, 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.
action_date: 2019-07-23
text: Introduced in House
action_date: 2019-07-23
text: Introduced in House