Bill Overview
Title: Student Loan Relief Act
Description: This bill requires the Department of Education to cancel or repay up to $25,000 in outstanding student loan debt for each borrower. Further, the bill outlines the method of loan discharge and, for tax purposes, excludes loan cancellation or repayment from a borrower's gross income.
Sponsors: Rep. Gonzalez, Vicente [D-TX-15]
Target Audience
Population: Individuals with outstanding student loan debt
Estimated Size: 45000000
- The bill directly affects individuals who have outstanding student loans.
- The National Center for Education Statistics reports millions of individuals in the U.S. hold student debt.
- Globally, student debt is an issue but the bill specifically targets debt that would be managed by the U.S. Department of Education, thus it's assumed to primarily impact U.S. citizens.
Reasoning
- The policy aims to relieve financial burden by canceling or repaying student loans up to $25,000 per borrower.
- With an average student loan debt of around $32,000, a significant portion of borrowers could see nearly full relief.
- The budget limits suggest approximately 36 million individuals could benefit under year one budget constraints, assuming maximum disbursement per individual.
- Some individuals may not receive full $25,000 relief if they owe less, allowing more borrowers to experience benefits.
- Individuals without significant student debt or those who have already repaid could represent a large minority unaffected by this policy.
Simulated Interviews
Software Developer (Austin, TX)
Age: 28 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This policy would be hugely beneficial for me.
- I could use the money saved for further education or investing in property.
- It would significantly reduce my financial stress.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 9 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Public School Teacher (Chicago, IL)
Age: 34 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- I will still have some debt left, but this significantly eases my burden.
- I'm hopeful it allows me to save more for my children's future.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Graphic Designer (San Francisco, CA)
Age: 23 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- Clearing my loan would mean I can focus on my career without worrying about monthly payments.
- It would give me a sense of financial freedom early in my career.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 7 |
| Year 2 | 9 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Entrepreneur (Phoenix, AZ)
Age: 42 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- It's a help, but I'll still have a significant amount of debt to manage.
- Any relief is welcome and would support growing my business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Biomedical Researcher (Boston, MA)
Age: 30 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- It's a welcome relief, reducing my financial stress significantly.
- I'll be able to focus more on my research and personal growth.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Nurse Practitioner (Seattle, WA)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 14/20
Statement of Opinion:
- I'm not affected by this policy since I've paid off my loans.
- However, it could benefit my children in the future when they go to college.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Marketing Manager (Miami, FL)
Age: 39 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 11/20
Statement of Opinion:
- This would clear my small remaining debt, which is nice but not life-changing.
- It's a great step for larger debt holders.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
IT Specialist (Denver, CO)
Age: 26 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 15/20
Statement of Opinion:
- This policy will clear my loans, allowing me more disposable income early in my career.
- It's an excellent boost for young professionals.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 7 |
| Year 2 | 9 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Architect (New York, NY)
Age: 45 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- Any reduction would help, but significant debt remains.
- Relief can help me focus on personal investments and growth.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Freelance Writer (Atlanta, GA)
Age: 31 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 13/20
Statement of Opinion:
- I don't directly benefit, but it's greatly beneficial for society overall.
- Many of my friends will likely benefit from such a policy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $900000000000 (Low: $800000000000, High: $1000000000000)
Year 2: $0 (Low: $0, High: $0)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The estimate assumes full participation and maximum allowable forgiveness for eligible borrowers.
- There would need to be coordination with loan servicers overseeing both federal and private student loans.
- The policy aims to benefit borrowers directly, thus not inherently generating direct federal savings.