Bill from Congressman Kildee would offer help with private student loans
WASHINGTON (WJRT) - Millions of college graduates don’t have to worry about paying their federal student loans until next fall.
The federal CARES Act of 2020 provided a six-month pause from payments with no accrued interest and President Joe Biden extended it until September 2021. But millions of other graduates with private student loans outside the federal system aren’t included in that assistance.
Congressman Dan Kildee, a Democrat from Flint, introduced the Lenders Offer Assistance Now Act to provide them additional protection during the ongoing coronavirus pandemic.
The LOAN Act bill would allow borrowers to discharge all private and federal school loans in bankruptcy, require lenders to discharge student loans when the borrower experiences total permanent disability and prohibit lenders from accelerating repayment if a cosigner becomes disabled.
“Too many hardworking students and families in Michigan are held back by the increasing burden of student loan debt,” Congressman Kildee said. “Unfortunately, the pandemic has only exacerbated the student loan crisis in America. We must offer help to students and families with private student loans, who have been left out of other forms of relief.”
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