Democrats introduce bills to help with student loan debt

Three bills are introduced to help those who have fallen behind on their federal student loans get their credit back on track.

According to EducationData.orgstudent loan debt today exceeds $1.75 trillion for more than 43 million Americans.

Students who defaulted on their federal student loans and then worked to clear their debt are being targeted by House Democrats in a set of three proposals.

If the Own state thanks to the consolidation law is passed, federal student loan defaults will be erased from the credit history of borrowers who combine their debts.

the A clean slate by the Reimbursement Act would erase a borrower’s poor credit history associated with a federal student loan in default if the debt was fully repaid.

Once a borrower has completed the rehabilitation of their student loan, the Student Loan Restoration and Credit Improvement Act would eliminate any bad credit report on a defaulted federal student loan.

“The debt is just too much,” said Rep. Alma Adams (D-NC), another co-sponsor of the plan. “We have turned colleges and universities into another barrier preventing families from entering the middle class.

The campaign comes as Democrats in Congress have urged the Biden administration to reverse student loan debt forgiveness for millions of borrowers.

However, there are doubts whether the president has the ability to do so or whether Congress needs to step in.

Republicans are also opposed to canceling student loan debt.

“I think we shouldn’t be asking people who didn’t go to college to foot the bill for those who did,” Sen. Chuck Grassley (R-IA) said at a hearing. august 2021 on student loan debt. “Debt cancellation would be extremely regressive and would disproportionately favor the richest at the expense of the rest.”

From August 31the temporary halt in federal student loan payments will end.

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