House Democrats have unveiled a proposal, the Student Debt Emergency Relief Act, to cancel student loan debt for millions of student loan borrowers amid the escalating Coronavirus crisis. The bill would cancel $30,000, tax-free, in federal student loans for borrowers. For student loan borrowers who continue to have student loan payments due even after the $30,000 in cancellation, the government would assume their monthly payments so borrowers can remain on track for loan forgiveness programs or loan payoff. All involuntary collections efforts by the U.S. Department of Education — including wage garnishments, tax refund seizures, and offsets of Social Security — would be suspended.
Currently, student loan borrowers impacted by the Coronavirus crisis may qualify for a 60 day, interest-free forbearance period where they do not need to pay their student loans. This does not apply to federal student loans held by guarantors or colleges, nor does it apply to private student loans.