Rep. Ilhan Omar’s Proposed Federal Student Loan Forgiveness Program
Due to the economic fallout from the Coronavirus, two Congressional Members have introduced a new Federal Student Loan Forgiveness Program called the Student Debt Emergency Relief Act, which seeks to offer federal student loan forgiveness benefits to every American with federal loans.
The backers for this newly proposed program are Representative Ilhan Omar, a Democrat from Minnesota, and Representative Ayanna Pressley, a Democrat from Massachusettes.
The details of their proposed new Federal student loan relief program include:
- Cancelling at least $30,000 in Federal student loan debt for every single American who has borrowed student loans from the Federal Government
- Making any approved Federal student loan cancellation benefit related to this program entirely tax-free, so that the borrower does NOT have to claim it as taxable income next year
- Making the U.S. Department of Education pay ALL monthly Federal student loan payments for as long as the coronavirus remains a public health emergency
- Protecting all Federal student loan borrowers from having their tax refunds, tax credits, Social Security or other wages garnished via involuntary collections programs, again, for as long as the public health emergency continues
Will The Student Debt Emergency Relief Act Get Passed?
If I’m being honest, probably not.
First off, while I love the idea behind this program and think it is both important and much-needed, I highly doubt it’ll end up being put into law for a couple of reasons.
Why? Because Representative Omar has very little clout, meaning she’s not a super important representative that can garner a ton of support and get people motivated to pass her bills.
She does a lot of grandstanding, saying bad things about President Trump, promoting progressive politics, etc., which is all well and good, but she has a poor track record of actually getting her proposals made into laws, and it takes a big personality with a ton of clout to get anything through Congress these days, which she is not.
President Trump’s Coronavirus Student Loan Programs
Second, President Trump has already addressed part of the student loan crisis, at least as it relates to the coronavirus, and he actually did two things that are pretty helpful: first, pausing payments on federal student loans, and second, suspending interest accumulation.
For the full details on President Trump’s Federal Student Loan Relief Programs passed during the Coronavirus emergency, please take a look at my Blog Posts on:
- The Coronavirus Student Loan Payment Suspension Program
- The Coronavirus Student Loan Interest Waiver Program
To be perfectly honest, while this program most likely won’t get made into law, there’s at least a decent chance that some additional benefits will get enacted during the coronavirus, especially if the crisis continues impacting people’s ability to go to work for an extended period of time.
And by the way, these aren’t the only student loan-related proposals being made right now, because everyone’s favorite student loan forgiveness-friendly Senators Bernie Sanders and Elizabeth Warren have both made suggestions of their own for new benefits programs.
To Get Help With Federal Student Loans
Fortunately, even if none of these new proposals are approved, the good news is that there are all sorts of existing benefits programs available to people with Federal student debt.
And you can find out all about them right here at ForgetStudentLoanDebt.com, because I’ve spent the past decade writing over 100 articles on these programs, so you’re bound to find something that can help you simply by checking out the rest of my site!
To get Help with Federal Student Loans, check out my Guides on:
- Federal Student Loan Forgiveness
- Federal Student Loan Bankruptcy
- Federal Student Loan Consolidation
- Federal Student Loan Delinquency & Default
- The Federal Student Loan Rehabilitation Program
- Federal Student Loan Wage Garnishment
- Federal Student Loan Deferment
- Federal Student Loan Forbearance
- Federal Student Loan Repayment Plans
To Get Help With Private Student Loans
And for those of you with private student loans, the bad news is that there’s way less assistance available, but that doesn’t mean there isn’t any!
If you’re got private student loan debt, then please look at my articles on getting Help with Private Student Loans, including:
- Private Student Loan Forgiveness Programs
- Private Student Loan Consolidation
- Private Student Loan Bankruptcy
- Private Student Loan Defaults
If you have any other questions about student loans, please post them in the Comments section below and I’ll do my best to get you a response within 24 hours!
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Disclaimer:Information obtained from Forget Student Loan Debt is for educational purposes only. You should consult a licensed financial professional before making any financial decisions. This site receives some compensation through affiliate relationships. This site is not endorsed or affiliated with the U.S. Department of Education.