A new legislative proposal includes student loan cancellation for frontline health care workers and teachers.
Here’s what you need to know.
Sen. Sheldon Whitehouse (D-RI), a member of the U.S. Senate Finance Committee, introduced two bills in Congress to cancel student loans. The potential winners include frontline health care workers and teachers. (6 major changes to student loan forgiveness).
“We owe so much to our health care workers and teachers – something we grew to appreciate even more during the COVID-19 crisis,” Whitehouse said. “This legislation honors the contributions of these public servants by helping them to wipe the slate clean of student loan debt.”
Student loan forgiveness for health care workers
The Student Loan Forgiveness for Frontline Health Workers Act would:
- cancel student loans for health care workers who have made “significant contributions during the Covid-19 pandemic”;
- includes frontline health care workers who contributed to the medical response (e.g., patient care, medical research or testing); and
- would apply to both private and federal student loans.
Rep. Carolyn Maloney (D-NY) has introduced the bill in the U.S. House of Representatives.
Student loan forgiveness for teachers
The Teacher Loan Forgiveness Improvement Act would:
- increase the amount of student loan forgiveness available to teachers;
- provide $30,000 in student loan relief rather than the current $17,500;
- would apply to “highly qualified” teachers as defined by the Department of Education;
- includes $15,000 instead of $5,000 for other teachers.
Rep. Elaine Luria (D-VA) introduced the bill in the U.S. House of Representatives.
Will your student loans get cancelled?
You may be asking: Will your student loans get cancelled? Since becoming president, President Joe Biden has cancelled more than $15 billion of student loans. That said, Biden will cancel $6.2 billion of student loans through changes to student loan forgiveness. This includes the limited waiver for Public Service Loan Forgiveness, which makes it possible to “count” previously ineligible student loan payments toward the requirements to get your student loans cancelled. Sen. Patty Murray (D-WA) has called for an extension of the limited waiver for student loan forgiveness until 2023. With Whitehouse’s twin proposals, it’s possible that frontline health care workers and teachers could get additional student loan forgiveness if Congress passes this legislation. Based on comments from White House Chief of Staff Ron Klain, it’s possible that Biden extends the student loan payment pause for a fourth time. Biden is also considering wide-scale student loan cancellation for student loan borrowers.
Student loan payments for federal student loans are scheduled to restart after May 1, 2022. Prepare now for student loan repayment. This means you should evaluate your options.
Here some popular ways to save money for your student loans:
- Student loan refinancing (lower interest rate + lower payment)
- Income-driven repayment (lower payment)
- Student loan forgiveness (federal student loans)