On September 17th, 2020, the House of Representatives passed a bill that could provide relief for up to 12 million student loan borrowers in Republican districts. The bill, the Student Loan Relief Act of 2020, would allow borrowers in GOP districts to refinance their student loans at lower interest rates and potentially save thousands of dollars in the process.
The bill, which was sponsored by Rep. Tom Malinowski (D-NJ) and co-sponsored by Rep. Mike Gallagher (R-WI), would allow borrowers to refinance their student loans at the current federal rate, which is currently 2.75%. This could potentially save borrowers thousands of dollars over the life of their loan.
The bill is expected to face significant opposition in the Senate, where it needs to pass with 60 votes. However, the bill has the potential to provide much-needed relief to millions of borrowers who are struggling to make their student loan payments.
In addition to the potential savings, the bill would also provide some protection for borrowers who are at risk of defaulting on their student loans. The bill would allow borrowers to enter into a repayment plan that would allow them to pay off their loans over a longer period of time, which would reduce the amount of interest they would have to pay.
The Student Loan Relief Act of 2020 is a step in the right direction for student loan borrowers in GOP districts. It could provide much-needed relief to borrowers who are struggling to make their loan payments and are at risk of defaulting. It is unclear if the bill will pass in the Senate, but it is an important step in providing relief to those who need it most.