COVID-19 Student Loan Relief Act (CSLRA) of 2020

Bill: 116-hr-7655
Sponsor: full_name: Rep. Scanlon, Mary Gay [D-PA-5]
Introduced: 2020-07-16
Policy area: Finance and Financial Sector
Subjects: Bankruptcy

Cardiovascular and respiratory health

Disability and paralysis

Emergency medical services and trauma care

Higher education

Infectious and parasitic diseases

Student aid and college costs

Wages and earnings
Latest action: action_date: 2020-07-16
text: Referred to the House Committee on the Judiciary.

Summaries:
action_date: 2020-07-16
action_desc: Introduced in House
text: <p><b>COVID-19 Student Loan Relief Act (CSLRA) of 2020 </b></p> <p>This bill allows student loan debt to be discharged in bankruptcy if (1) the debtor's income has declined by a specified amount during the COVID-19 (i.e., coronavirus disease 2019) outbreak or as a result of the outbreak, or (2) the primary income earner of the debtor's family died or became seriously disabled as a result of COVID-19. </p>

tv_txt: I 116th CONGRESS 2d Session H. R. 7655 IN THE HOUSE OF REPRESENTATIVES July 16, 2020 Ms. Scanlon (for herself, Mr. Nadler , Mr. Cicilline , Mr. García of Illinois , Ms. Adams , and Mr. Vargas ) introduced the following bill; which was referred to the Committee on the Judiciary A BILL To amend title 11 of the United States Code to make dischargeable debts for educational loans of certain debtors whose income has been reduced for the duration of or as a result of the COVID-19 outbreak or who have a family member who died as a result of COVID-19.

1. Short title This Act may be cited as the COVID-19 Student Loan Relief Act (CSLRA) of 2020 . 2. Dischargeable educational loans Section 523 of title 11 of the United States Code is amended by adding at the end the following: (f) Subsection (a) shall not apply with respect to a debt of the kind described in paragraph (8) if— (1) the pre-tax income for a calendar year of the debtor has declined— (A) by at least 20 percent, and the prior income of the debtor was less than $75,000 per year; (B) by at least 30 percent, and the prior income of the debtor was between $75,000 and $125,000; or (C) by at least 40 percent, and the prior income of the debtor was not less than $125,000; beginning January 21, 2020 and extending until 60 days after the duration of the COVID-19 Emergency or the duration of the COVID-19 outbreak or as a result of the COVID-19 outbreak; or (2) the primary income-earner of the debtor’s family died or became seriously disabled as a result of COVID-19. .