[Congressional Record Volume 166, Number 128 (Tuesday, July 21, 2020)]
[Senate]
[Page S4351]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REED (for himself, Ms. Murkowski, Mr. Jones, and Mr. 
        Tillis):
  S. 4237. A bill to extend zero interest rate benefits and payment 
suspension to all Federal student loan borrowers, and for other 
purposes; to the Committee on Health, Education, Labor, and Pensions.
  Mr. REED. Mr. President, today, along with Senator Murkowski, we are 
introducing legislation to provide relief to all Federal student loan 
borrowers during this public health and economic crisis. The bipartisan 
Student Loan Fairness Act, which is also cosponsored by Senators 
Murkowski, Jones, and Tillis, will correct an inequity in the CARES Act 
that left out millions of Federal student loan borrowers from benefits 
to ease the burden of repayment as we continue to fight COVID-19.
  The CARES Act benefits are restricted to borrowers of student loans 
that are held by the Federal government. This leaves out the borrowers 
whose Federal Family Education Loans (FFEL) are still held by 
commercial and State agency lenders, and those with Perkins Loans that 
are administered by institutions of higher education. In fact, nearly 6 
million borrowers were left out under the FFEL Program and another 1.9 
million under the Perkins Loan Program. This disparate treatment by 
loan type is as confusing as it is unfair.
  In April, a broad group of more than two dozen organizations 
representing educators, borrower advocates, veterans, lenders, guaranty 
agencies, and student loan servicers implored Congress to remedy this 
inequity. They wrote, ``A Federal loan borrower--regardless of the 
origination of that loan, be it Part B, D, E, commercial, or 
government-held--should receive equal, immediate, and critical support 
in this unprecedented time . . . Already, borrowers are confused as to 
why their Federal loans are treated differently than others.''
  The Student Loan Fairness Act will extend the CARES Act relief to 
these borrowers by covering the cost of interest and suspending monthly 
payments for the period of March 13 through September 30, 2020, and 
suspending all involuntary collection, such as administrative wage 
garnishment or offsets from tax refunds, for this period.
  This legislation is one component of what should be a comprehensive 
package of student loan debt relief. As the crisis continues, we should 
extend the repayment relief until health and economic conditions 
improve sufficiently for borrowers to be able to begin repayment. 
Additionally, we should forgive at least $10,000 of debt for each 
student loan borrower to help speed the recovery and reduce the drag of 
the roughly $1.6 trillion in outstanding student loan debt on economic 
prospects for over 40 million Americans. Going forward, we must reduce 
the need for student loan borrowing by expanding need-based grants, 
such as the Pell Grant, and ensuring that states and institutions do 
their part to lower the cost to students and families.
  We should work together to build on the important steps Congress took 
to provide relief to student loan borrowers in the CARES Act. However, 
we need to ensure that all Federal student loan borrowers have access 
to this relief. I hope that my colleagues will join us in cosponsoring 
the Student Loan Fairness Act and pushing for its inclusion in the next 
COVID-19 relief package.
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