Elizabeth Warren calls for cancellation of student loan payments during coronavirus emergency
The proposal would require the government to do monthly payments for anyone with federal student loans, wiping out some of their debt.
It guarantees a minimum of $ 10,000 of debt relief per borrower. If this amount is not reached by the end of the national emergency, the proposal requires the government to make additional payments on behalf of the borrower. There is no limit to the relief, and a spokesperson for Warren did not immediately respond when asked how much the proposal would cost.
The plan would also end the accumulation of interest, as well as the collection of debts – including the garnishment of wages or tax repayments – for borrowers in default. It calls for the implementation of a three-month grace period after the national emergency is over, during which fees would be waived for late payments.
As of Thursday, borrowers and loan officers were still waiting for the Education Department to release details on how the waiver worked and how long. Democratic proposal would also codify loan waiver into law
Consumer advocates like Ashley Harrington of the Center for Responsible Lending have argued that Trump’s waiver would offer little help to those who may have lost their jobs or had their hours cut due to the coronavirus – but applauded the plan democrat.
“This proposal is paramount if we are to provide much needed relief quickly to borrowers who are severely affected by this public health epidemic,” Harrington said.