summary
Introduced
04/03/2019
04/03/2019
In Committee
04/03/2019
04/03/2019
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
116th Congress
Bill Summary
A bill to amend the Higher Education Act of 1965 in order to increase usage of the Federal student loan income-based repayment plan and improve repayment options for borrowers, and for other purposes. This bill addresses repayment options, loan disclosures, and loan counseling for student loans. The bill revises requirements concerning repayment options for student loan borrowers. For instance, the bill terminates interest capitalization and origination fees for Federal Direct Loans, provides assistance to low-income borrowers or borrowers who are delinquent on loan payments, and replaces the existing income-based repayment plans with two new plans. Under the new plans, borrowers may choose (1) a fixed repayment plan with equal monthly payments paid over a period of 10 years, or (2) an income-based repayment plan with monthly payments equal to 10% percent of their income above the poverty level. The income-based plan is capped at 20 years of payments. The bill also revises requirements concerning student loan disclosures and student loan counseling for borrowers. For instance, the bill requires the Department of Education to maintain online counseling tools that provide borrowers with annual and exit student loan counseling.
AI Summary
This bill aims to simplify student loan repayment options, end interest capitalization and origination fees, provide assistance to borrowers in distress, and improve loan information and counseling.
Key provisions include:
- Revising the income-based repayment plan to set monthly payments at 10% of income above the poverty level, with a 20-year repayment period.
- Establishing a fixed 10-year repayment plan with equal monthly payments.
- Terminating interest capitalization and origination fees for federal direct loans.
- Limiting the amount that can be seized from borrowers' incomes for student loan debt, and allowing multiple loan rehabilitations.
- Creating a "pause payment" process to temporarily relieve borrowers from repayment.
- Automatically enrolling delinquent borrowers and those rehabilitating defaulted loans into income-based repayment.
- Streamlining student loan disclosures and enhancing loan counseling requirements.
Committee Categories
Health and Social Services
Sponsors (11)
Jeff Merkley (D)*,
Tammy Baldwin (D),
Richard Blumenthal (D),
Ben Cardin (D),
Catherine Cortez Masto (D),
Kirsten Gillibrand (D),
Kamala Harris (D),
Brian Schatz (D),
Debbie Stabenow (D),
Chris Van Hollen (D),
Ron Wyden (D),
Last Action
Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (on 04/03/2019)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.congress.gov/bill/116th-congress/senate-bill/1002/all-info |
| BillText | https://www.congress.gov/116/bills/s1002/BILLS-116s1002is.pdf |
| Bill | https://www.congress.gov/116/bills/s1002/BILLS-116s1002is.pdf.pdf |
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