House Passes HEROES Act With Limits On Student Loan Relief – What’s Next?

The U.S. House of Representatives just passed the HEROES Act – a massive, $3 trillion stimulus bill. The bill is designed to provide broad financial relief to individuals, businesses, nonprofit organizations, and state and local governments who have been hit hard by the economic fallout from the COVID-19 pandemic. Senate leadership has already declared the bill “dead on arrival,” and the President has promised to veto it.

Student Loan Relief Provided by the HEROES Act

House progressives had originally pushed for $30,000 in across-the-board student loan forgiveness. The released version of the bill reduced the forgiveness, but still provided meaningful student loan student relief, including the following:

  • $10,000 in federal student loan forgiveness;
  • $10,000 in private student loan forgiveness;
  • An extension of the CARES Act suspension of payments, interest, and collections on government-held federal student loans through September of 2021, and an expansion of those protections to include commercially-held FFEL-program federal student loans as well as Perkins loans.
  • A fix to Public Service Loan Forgiveness that would allow payments made on previously-consolidated federal student loans to potentially count towards the 120 qualifying monthly payments required for the program.

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