Bill Overview
Title: Student Loan Borrower Relief Act
Description: This bill revises income-driven repayment plans for federal student loans, including by reducing from 25 years to 15 years the maximum repayment period under these plans. Additionally, the bill makes changes to the Public Service Loan Forgiveness program, including by cancelling a portion of a borrower's student loans after every 12 months of eligible public service employment.
Sponsors: Rep. Wilson, Frederica S. [D-FL-24]
Target Audience
Population: Individuals with Federal Student Loans
Estimated Size: 45000000
- The bill affects individuals who have federal student loans, specifically those enrolled in or eligible for income-driven repayment plans.
- It targets borrowers of federal student loans engaged in public service employment, who are a part of the Public Service Loan Forgiveness program.
- According to the Federal Reserve, there are approximately 45 million student loan borrowers in the United States.
- Not all borrowers are on income-driven repayment plans, but a significant portion of borrowers use these plans to manage their debt.
- The Public Service Loan Forgiveness program has about 1.3 million borrowers working towards loan forgiveness.
Reasoning
- The population impacted by this policy includes millions of student loan borrowers, particularly those on income-driven repayment plans and participants in the Public Service Loan Forgiveness program.
- Assuming budget constraints, the policy may prioritize borrowers with significant debt in public service roles and those on the longest repayment plans.
- This policy's impact is long-term, reducing stress about repayment but may initially be misunderstood or underutilized.
Simulated Interviews
Teacher (New York, NY)
Age: 32 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 12/20
Statement of Opinion:
- I am optimistic about my future finances with this policy.
- Currently, my debt feels overwhelming but this change would ease my mind.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Software Engineer (Chicago, IL)
Age: 25 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- I probably won't be directly affected since I'm not on an income-driven repayment plan.
- It's good others might get relief, but I wish the system benefited more people.
- Public service benefits others, perhaps making it a more viable career option with this policy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Nonprofit Manager (Los Angeles, CA)
Age: 45 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 15.0 years
Commonness: 8/20
Statement of Opinion:
- Completing repayment faster will lift a massive burden off my shoulders.
- I hope the forgiveness terms are clear and truly beneficial; there's still skepticism.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 8 | 4 |
Freelancer (Austin, TX)
Age: 29 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- This policy won't affect me because I'm not in public service or on the repayment plans highlighted.
- Hopefully, broader policies could address freelancers or all borrowers eventually.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Social Worker (Miami, FL)
Age: 37 | Gender: male
Wellbeing Before Policy: 3
Duration of Impact: 15.0 years
Commonness: 7/20
Statement of Opinion:
- It's a relief to know there could be tangible forgiveness within a decade.
- I stayed in public service to serve students but the debt is oppressive; this helps.
- Concerned about administrative backlog or clarity in implementation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 3 |
| Year 2 | 6 | 3 |
| Year 3 | 6 | 3 |
| Year 5 | 7 | 3 |
| Year 10 | 8 | 3 |
| Year 20 | 8 | 3 |
Nurse (Boston, MA)
Age: 50 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 8.0 years
Commonness: 6/20
Statement of Opinion:
- I'm cautiously hopeful that my late career shift to public service will provide financial reprieve.
- It's unclear how much I can benefit given my mid-life transition into qualifying employment.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 8 | 4 |
Graphic Designer (Seattle, WA)
Age: 26 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 14/20
Statement of Opinion:
- If my repayment period can truly decrease to 15 years, it's motivating.
- The policy needs to ensure low-income earners like me feel the effects soon.
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 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 8 | 5 |
Police Officer (Phoenix, AZ)
Age: 41 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- Reform gives hope that my public service role might qualify.
- Expect clarity and expanded definitions to bring tangible benefits, though my debt is small.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Civil Engineer (Denver, CO)
Age: 34 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- I am not in public service, so I won't benefit directly from this.
- Policies like these are targeted but more universal relief would be ideal.
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 |
Public Health Administrator (Atlanta, GA)
Age: 31 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 8/20
Statement of Opinion:
- This will have a significant impact on my decision to remain in public service long-term.
- I have anxiety about student loan debt, and forgiveness enhances potential life choices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 9 | 4 |
| Year 20 | 9 | 4 |
Cost Estimates
Year 1: $12000000000 (Low: $10000000000, High: $14000000000)
Year 2: $12500000000 (Low: $10500000000, High: $14500000000)
Year 3: $13000000000 (Low: $11000000000, High: $15000000000)
Year 5: $13500000000 (Low: $11500000000, High: $15500000000)
Year 10: $15000000000 (Low: $13000000000, High: $17000000000)
Year 100: $20000000000 (Low: $18000000000, High: $22000000000)
Key Considerations
- Significant initial costs are associated with increased loan forgiveness rates, impacting federal budget allocations.
- Potential taxpayers' incentive could slightly improve employment as borrowers engage in public service jobs.
- The policy could set a precedent affecting future federal loan forgiveness terms and conditions.