Great news for Americans dealing with the burden of student loans! House Democrats has proposed widespread student loan forgiveness due to Coronavirus.
The bill which would be called the Student Debt Emergency Relief Act, would do the following:
• Cancel $30,000 in federal student loans for borrowers.
• The student loan forgiveness would be tax-free. In other words, the debt cancellation would not be taxed as income.
• For student loan borrowers who continue to have student loan payments due even after the $30,000 in cancellation, the government would assume their monthly payments so borrowers can remain on track for loan forgiveness programs or loan payoff.
• All involuntary collections efforts by the U.S. Department of Education — including wage garnishments, tax refund seizures, and offsets of Social Security — would be suspended.
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