WASHINGTON, D.C., USA — Senate education committee Chairman Senator Lamar Alexander (R-Tenn.) proposed a bill Tuesday that would continue deferring student loan payments for people with no income, after Oct. 1.
In March, Congress deferred monthly student loan payments for 6 months due to the coronavirus pandemic. In around 2 months, that deferral will end and borrowers may need to continue payments.
The proposed bill would also make sure payments are never more than 10 percent of borrowers' incomes after deducting housing and food costs after they start earning an income.
The bill is called the Student Loan Repayment and FAFSA Simplification Act.
"In other words, if you have a student loan, your monthly payment is $0 if you do not have any income, for whatever reason," Sen. Alexander said in a release. "Number 2: When you do begin earning income, your monthly payment will never be more than 10 percent of your income after you deduct the necessities of life, such as the cost of housing — such as rent or mortgage — and food.”
Around 43 million people have taken out student loans in the U.S., according to officials.