U.S. Reps. Suzanne Bonamici (D-OR), Lucy McBath (D-GA), and Susan Wild (D-PA) joined U.S. Reps. Emanuel Cleaver (D-MO), Danny Davis (D-IL), and Alan Lowenthal (D-CA) in presenting the Student Loan Borrower Safety Net Act of 2021, which seeks to provide a safety net of resources for federal student loan borrowers entering the repayment phase.
The measure would require increased lender outreach to borrowers while providing borrower protection for those who miss payments. It stems from the Department of Education’s COVID-19 student loan repayment pause of nearly two years, slated to end on Feb. 1, 2022.
“The pause on student loan repayment for the COVID-19 pandemic has been a lifeline for borrowers in Oregon and across the country,” Bonamici said. “As the pause ends and payments resume, borrowers should be protected from the worst effects of missing payments, whether unintentionally or because of financial distress. The Student Loan Borrower Safety Net Act will provide borrowers with the help they need in this time of transition.”
The legislation stipulates ease for borrowers to get into income-driven repayment plans; fosters easier access to economic hardship support; and
extends the period for servicers to contact borrowers who miss a payment.
“Students in Georgia and across our country have endured unimaginable difficulty over the last few years, and the student loan repayment pause served as needed relief in these difficult times,” McBath said. “As these payments come due once again, our work in Congress should support those seeking educational success. Our bill is an important step in protecting our student borrowers and helping safeguard their financial futures.”