Will Mitch McConnell Accept More Student Loan Stimulus?
In March, Senate Majority Leader Mitch McConnell (R-KY) agreed to include a six-month period break in student loan payments in the coronavirus relief legislation.
McConnell accepted the provision after Senate Democrats, led by Senator Elizabeth Warren (D-MA), introduced a bill this would force the Department of Education to make payments for student borrowers. The bill also provided for a minimum of $ 10,000 in student debt relief for each borrower. Democratic presidential candidate Joe Biden endorsed the plan.
As the pandemic continues, people are calling for more help. In May, House Democrats passed the Heroes Act. It would provide stimulus checks and extend the suspension of the student loan for another year, until September 30, 2021. The bill provides for a $ 10,000 remission of student debt, but only for borrowers deemed to be in difficulty before. let the pandemic strike.
However, there was little support for the bill in the Senate among Republicans. Senate Republicans even described the bill as a “liberal wish list.”
And when it comes to student debt cancellation, it doesn’t seem like something Republicans want at all. A Republican assistant for the Senate Education Committee says Inside Higher Ed in April that there didn’t seem to be an appetite for student debt cancellation in their caucus.
Student borrowers are asking for more relief before the payment break expires. Colleges and universities that have been hit hard by the coronavirus are also asking for more help. However, what McConnell will accept is unknown.
According to recent reportsMcConnell told reporters in Kentucky that the next legislative package would be the last. And colleges asking for more money might have a hard time convincing lawmakers to respond to their request. Inside Higher Ed reported Last week, McConnell told the president of Northern Kentucky University that any new stimulus money would be tied to jobs.
If this is the case, student borrowers may not be able to obtain overall relief. However, it should be noted that even without the CARES Act, student borrowers who experience loss of income or hardship have access to some relief. Student borrowers can use income-based or forbearance repayment programs if they are facing economic hardship.
Congress should do something before the end of July, when the enhanced unemployment benefits expire. Debt cancellation appears to be out of place, but Democrats may be able to negotiate an extension of the loan repayment suspension. Otherwise, borrowers should be prepared for their loans to mature in October.