Congresswoman Frederica S. Wilson and Congressman Mark Pocan Introduce Relief for Underwater Student Borrowers Act

Statement

Congresswoman Frederica S. Wilson (FL-24) and Congressman Mark Pocan (WI-02), both members of the House Education and Workforce Committee, introduced the Relief for Underwater Student Borrowers Act, today. This bill would allow student loan borrowers who have been granted debt relief as a result of consistent repayment towards their student loan debt an exemption from being taxed on the amount forgiven.

"As a member of the Subcommittee on Higher Education and Workforce Training, college affordability is one of my top priorities. Today, student debt is at a record high, with individual debt forcing many people to put off major purchases such as buying a home or automobile," said Congresswoman Wilson. "This bill prevents student loan borrowers from being hit with an additional tax burden for debt that has been forgiven after 20 years of consistent repayment, and in the event of suffering a total permanent disability or death, this bill prevents the debt forgiven from being considered taxable income. The Relief for Underwater Student Borrowers Act helps individual borrowers and their families, as well as strengthens the economy."

"Student loan debt is weighing down our economy and holding back a generation of Americans as total student loan debt has grown to more than $1.2 trillion -- more than total U.S. credit card debt," said Rep. Mark Pocan. "This legislation closes a major gap in our tax code which penalizes some borrowers who have been granted debt relief after at least 20 years of consistent repayment towards their student loan debt."

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