Senator Hassan Joins in Introducing Legislation To Help Student Loan Borrowers

WASHINGTON – U.S. Senator Maggie Hassan (D-NH), a member of the Health, Education, Labor, and Pensions Committee, joined her colleagues in introducing comprehensive legislation that would ensure affordable, simple income-based repayment plans for all federal student loan borrowers. Specifically, the Affordable Loans for Any Student Act of 2022 would give all federal student loan borrowers an option to structure their loan so that they pay 10% of any income they earn above the poverty level until their loan is paid off or until they have made 20 years of payments, whichever comes first. That option would give borrowers the flexibility to pursue public service, artistic careers, entrepreneurial initiatives, or other lower- paying jobs without fear of defaulting on loans.

“Student loan debt is burdening young Americans and dragging our economy down with it,” Senator Hassan said. “This commonsense bill will help make it easier for borrowers to make their payments while giving them the freedom to pursue their careers – whether that is to start their own business or enter into public service. We must take action to help ensure that borrowers are not crushed by the weight of student debt, and this bill is one important step to help do just that.”

Specifically, the Affordable Loans for Any Student Act of 2022 would overhaul the confusing system of income-based repayment plans to give borrowers a simple choice between two plans:

• A Fixed Repayment Plan with equal monthly payments sufficient to repay the loan and any accrued interest over a period of 10 years; or
• An Income-Based Repayment (IBR) Plan in which a borrower pays 10 percent of their income above a poverty level, capped at 20 years of payments, after which any remaining debt will be forgiven.

Senator Hassan is working in Congress to address student loan debt and help borrowers. Last month, she joined her colleagues in calling for an investigation of student loan lenders that intentionally misrepresent loan cancellation eligibility to borrowers. Senator Hassan is working to strengthen the Public Service Loan Forgiveness program and helped close a loophole that for-profit colleges use to take advantage of veterans, service members, and their families.

Full bill text can be found here.

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