Alexander Proposes “No Income. No Monthly Payment.” For 43 Million Student Loan Borrowers

Posted on July 21, 2020

“In other words, if you have a student loan, your monthly payment is ZERO if you do not have any income, for whatever reason. 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 and food.” — Senator Lamar Alexander

WASHINGTON, July 21, 2020 — Senate education committee Chairman Lamar Alexander (R-Tenn.) proposed today that 43 million student loan borrowers be able to continue deferring monthly payments after October 1 if they have no income.

“In March, Congress deferred student loan payments for six months, but without congressional action, payments will resume starting October 1,” Alexander said today on the Senate floor.

“October 1 is just around the corner,” Alexander continued. “What do we say to those 43 million student loan borrowers today?”

“I propose that we say this: Number One: No Income: No monthly payment. In other words, if you have a student loan, your monthly payment is zero if you do not have any income, for whatever reason. Number Two: 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.”

Read Chairman Alexander’s full remarks introducing the Student Loan Repayment and FAFSA Simplification Act here.

Click here for a section by section of the Student Loan Repayment and FAFSA Simplification Act

###