Bill Overview
Title: Student Loan Relief for Medicare and Social Security Recipients Act of 2022
Description: This bill requires the Department of Education to forgive the outstanding balance of principal, interest, and fees due on eligible federal student loans for borrowers who are recipients of Medicare or Social Security Disability Insurance.
Sponsors: Rep. Schiff, Adam B. [D-CA-28]
Target Audience
Population: People who are recipients of Medicare or Social Security Disability Insurance and have outstanding federal student loans
Estimated Size: 10000000
- Medicare is a federal program that provides health coverage to individuals who are 65 or older or have a severe disability, no matter their income.
- Social Security Disability Insurance (SSDI) provides benefits to disabled workers who have paid into the Social Security system and meet certain criteria.
- Both Medicare recipients and SSDI recipients may have outstanding federal student loans.
- A significant number of US citizens are recipients of Medicare, with 65 million enrolled as of 2023.
- Approximately 8 million Americans receive Social Security Disability Insurance (SSDI) benefits as of 2023.
- Not all individuals on Medicare or SSDI will have federal student loans, but many may due to returning to education or continuous education policies.
- Individuals who are both Medicare or SSDI recipients and have eligible federal student loans are the primary target of this bill.
Reasoning
- The policy targets a specific subset: Medicare and SSDI recipients with federal student loans, estimated at 10 million people.
- The policy forgives student loans, improving financial stability for recipients.
- The budget limits may mean not all eligible recipients receive relief, especially if their loan amounts are larger.
- There is potential overlap between Medicare and SSDI recipients, increasing complexity.
- Intended beneficiaries are older or disabled individuals who pursued further education, having outstanding student debt.
- The Cantril wellbeing score reflects perceived life quality, potentially improving with debt relief.
- Diverse impacts exist due to varying loan sizes and personal circumstances among recipients.
Simulated Interviews
Retired educator (Iowa)
Age: 67 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- This relief method is incredible. It feels like a burden lifted after years of paying.
- Education was essential for my previous career, and the loans were a necessity as an older adult.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 4 |
Unemployed (California)
Age: 45 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 2/20
Statement of Opinion:
- Forgiving loans would help me greatly by reducing monthly expenses, making SSDI stretch further.
- I might focus on retraining again for something feasible given my health.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 4 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 3 |
| Year 10 | 8 | 2 |
| Year 20 | 8 | 2 |
Software engineer (Texas)
Age: 30 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 4/20
Statement of Opinion:
- It's a helpful policy for those burdened by loans, but it doesn't apply to me.
- My main issues are more related to physical health and employment challenges.
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 |
Part-time lecturer (New York)
Age: 53 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- People in my situation often juggle between part-time work and health issues; loans add pressure.
- This relief would mean a chance to focus more on health and job satisfaction without the debt cloud.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 4 |
| Year 10 | 8 | 4 |
| Year 20 | 8 | 4 |
Retired (Florida)
Age: 70 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- As an elder, realigning my finances with a fixed income would be invaluable without the education debts.
- This policy could improve retirement quality immensely.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 9 | 4 |
| Year 20 | 9 | 4 |
Disabled veteran (Illinois)
Age: 55 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 2/20
Statement of Opinion:
- Loan forgiveness means an opportunity to concentrate more on personal growth and less financial anxiety.
- Many like me try to lift off by pursuing skills within our capabilities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 4 |
| Year 20 | 9 | 4 |
Semi-retired (Ohio)
Age: 62 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- I'd be able to make retirement savings go further without education loan payments.
- This policy could enable semi-retired roles to stretch well into full retirement years with security.
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 | 8 | 5 |
| Year 20 | 8 | 4 |
Freelance writer (Georgia)
Age: 28 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 2/20
Statement of Opinion:
- Struggling with debt isn't easy on SSDI, relief would let me invest more in my work and health.
- Being young on SSDI is challenging enough.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 9 | 3 |
| Year 20 | 9 | 2 |
Community volunteer (Oregon)
Age: 60 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 2/20
Statement of Opinion:
- Having these debts forgiven would mean a world of difference. I could feel my work is worth more, giving back to the community unencumbered.
- Smaller, debt-free income lets me focus on volunteering and providing assistance others can't.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 4 |
Fully retired (Arizona)
Age: 75 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- Eliminating the financial burden of loan payments means focusing on personal health and travel aspirations.
- Fixed income would stretch much further.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 3 |
| Year 10 | 7 | 2 |
| Year 20 | 7 | 2 |
Cost Estimates
Year 1: $300000000000 (Low: $150000000000, High: $450000000000)
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 policy only applies to federal student loans; private loans are unaffected.
- Determining exact numbers of eligible recipients may present challenges due to varying borrowing behaviors and loan statuses among individuals.