WASHINGTON (WJRT) – Millions of college graduates don’t have to worry about paying off their federal student loans until next fall.
The federal CARES law of 2020 provided for a six-month hiatus for accrued interest-free payments and President Joe Biden extended it until September 2021. But millions more graduates on private student loans outside the federal system are not included in this help.
Congressman Dan Kildee, a Democrat from Flint, introduced the Lenders Offer Assistance Now Act to provide them with additional protection during the ongoing coronavirus pandemic.
The LOAN Act would allow borrowers to pay off all private and federal school loans in the event of bankruptcy, require lenders to pay off student loans when the borrower suffers from total permanent disability, and prohibit lenders from speeding up the loan. reimbursement if a co-signer becomes disabled.
âToo many students and hard-working families in Michigan are held back by the growing burden of student debt,â said Congressman Kildee. âUnfortunately, the pandemic has only exacerbated America’s student loan crisis. We need to provide assistance to students and families with private student loans, which have been excluded from other forms of assistance. “
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