Yesterday Congresswoman Lauren Underwood introduced the “Pandemic Accommodation to Support Students” (PASS) Act to extend critical student loan relief.
Borrowers during the coronavirus pandemic have been protected from loan collection under the CARES act since March. The CARES act has suspended loan payments, interest accrual, and involuntary collections on federal student loans, but on December 31, 2020 the suspensions on loan collecting are set to expire.
The PASS act would extend that loan relief until September 30, 2021.
Underwood Proposes PASS act
“If the freeze on federal student loan payments is allowed to expire, millions of Americans could be thrown into even greater financial uncertainty, and we must use every avenue available to extend this urgently needed relief,” said Congresswoman Lauren Underwood (IL-14). “The PASS Act amends bipartisan provisions in the CARES Act to extend relief to borrowers until the economic impacts of the pandemic have subsided,” said Underwood.
On Friday, Underwood led 91 members of Congress in a letter to President Trump, requesting that he use executive authority to extend student loan relief.
What is the CARES Act?
The CARES Act was passed by Congress to provide economic relief from losses suffered due to COVID-19. A portion of the funds were allocated to be used by higher education for emergency financial aid grants to be issued to students. At least 50% of funds received by schools must be directly spent on grants for students.
Related CARES Act Content:
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