Economic and Student Loan Debt Relief Act of 2020

Bill: 116-hr-7114
Sponsor: full_name: Rep. Stivers, Steve [R-OH-15]
Introduced: 2020-06-04
Policy area: Education
Subjects: Cardiovascular and respiratory health

Emergency medical services and trauma care

Employee benefits and pensions

Government lending and loan guarantees

Higher education

Income tax exclusion

Infectious and parasitic diseases

Interest, dividends, interest rates

Student aid and college costs
Latest action: action_date: 2020-06-04
text: 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.

Summaries:
action_date: 2020-06-04
action_desc: Introduced in House
text: <p><b>Economic and Student Loan Debt Relief Act of 2020</b></p> <p>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.</p> <p>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.</p> <p>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.)</p> <p>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.)</p>

tv_txt: I 116th CONGRESS 2d Session H. R. 7114 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.

1. Short title This Act may be cited as the Economic and Student Loan Debt Relief Act of 2020 . 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. . 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, .