Letter to the Hon. Mitch McConnell, Majority Leader of the U.S. Senate, the Hon. Charles E. Schumer, Minority Leader of U.S. Senate - Warner, Colleagues Call for Long-term Relief for 43 Million Student Loan Borrowers Amid COVID-19

Letter

Dear Leader McConnell and Leader Schumer:
We write in support of our nation's federal student loan borrowers, specifically the
millions of those whose ability to repay their loans has been negatively impacted by the novel
coronavirus (COVID-19) pandemic and resulting economic crisis. Although the President
recently issued an Executive Order temporarily extending forbearance for some borrowers and
waiving interest through the end of the year, Congress must act to ensure this relief is reliably
available until the public health emergency ends. Further, only congressional action will ensure
that all of our nation's 43 million federal student loan borrowers are able to access full relief. Just
as the Coronavirus Aid, Relief, and Economic Security (CARES) Act provided six months of
relief following administrative action, we strongly believe that student loan forbearance should
be codified for the duration of our economic crisis in the next COVID-19 response legislation.
For the 19th consecutive week, over 1 million Americans have filed for new
unemployment benefits.1 This unprecedented increase in job loss in the U.S. resulting from the
coronavirus has left many people unable to afford even basic necessities. Despite the sudden and
rapid rise in unemployment numbers, the U.S. is likely to experience high unemployment levels
for a significant time. A recent report from the Congressional Budget Office (CBO) estimates
that unemployment will still be over 9% by 2021.2 As families continue to face sudden
joblessness, high medical bills, and other financial setbacks resulting from the crisis, tens of
millions of student loan borrowers have continued to worry about when they will have to resume
their payments.
We appreciate your leadership in ensuring that the CARES Act provided relief to certain
federal student loan borrowers through September 30, 2020. Congress extended a critical lifeline
by not requiring payments on most federally-held loans, suspending interest accrual for such
loans, prohibiting forced collections and negative credit reporting, and ensuring that student loan
borrowers continue receiving credit toward Public Service Loan Forgiveness, income-driven
repayment forgiveness, and loan rehabilitation. These key details were an important part of the
relief provided to borrowers.

Unfortunately, nearly 8 million borrowers were not eligible for the CARES Act relief,
and will not benefit from the President's Executive Order. These donut holes must be closed.
And, while administrative action extending the forbearance will provide relief to many
borrowers, it is not clear how the U.S. Department of Education will handle crucial issues related
to credit toward forgiveness, credit reporting, loan rehabilitation, and collections that were
addressed by the CARES Act. It is critical that Congress provide this relief legislatively so that
payments do not resume before the economy is showing signs of recovery, borrowers do not
experience collateral damage from further donut holes in the Executive Order, and no one faces
unnecessary uncertainty about the status and treatment of their loans during this difficult time.
We also know that the burden of student debt is even heavier for Black and Latino
borrowers. About 90% of Black students and 72% of Latino students take out loans, compared to
66% of white students.3 The student loan crisis has always contributed to inequality in the U.S.,
and, without further Congressional action, COVID-19 will only exacerbate the problem. Given
the dire circumstances for many student loan borrowers, we urge you to ensure that an extension
of reprieve on student loan payment is codified in future COVID-19 related legislation.
The U.S. House of Representatives passed the Health and Economic Recovery Omnibus
Emergency Solutions (HEROES) Act on May 15, 2020. The bill would extend the current
suspension of payments, interest, and involuntary collections through September 2021. This
timeline is essential given the projected length of the economic crisis borrowers are facing. The
bill also extends the relief in the CARES Act to all federal student loans. We request your
leadership in ensuring that the Senate adopts these HEROES Act provisions, and appreciate your
continued work in getting essential relief to our nation's student loan borrowers.
Sincerely

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