Bill Overview
Title: Student Loan Forgiveness for Frontline Health Workers Act
Description: This bill establishes temporary programs to provide federal and private student loan forgiveness to certain frontline health care workers. Frontline health care workers are those individuals who have made significant contributions to the medical response (e.g., patient care, medical research, or testing) to the COVID-19 national emergency. Specifically, the Department of Education (ED) must carry out a program to forgive the outstanding balance of principal and interest due on federal student loans for borrowers who are frontline health care workers. Additionally, the Department of the Treasury must carry out a program to repay in full the outstanding balance of principal and interest due on certain private student loans for borrowers who are frontline health care workers. ED and Treasury must coordinate to ensure that eligibility determinations are consistent across both programs and that frontline health care workers who are eligible for both programs may apply for loan forgiveness with a single application. Further, such programs must be available to frontline health care workers who were borrowers of eligible loans and who died as a result of COVID-19. The bill specifies the notification requirements related to the availability of these programs. ED, Treasury, and the Department of Health and Human Services must jointly establish an intergovernmental working group to assist with the administration of these programs, including the development of the application process. The bill also excludes discharged student loan debt under these programs from an individual's gross income.
Sponsors: Sen. Whitehouse, Sheldon [D-RI]
Target Audience
Population: Frontline health care workers involved in the COVID-19 response with student loans
Estimated Size: 1500000
- The bill targets individuals recognized as frontline health care workers involved in patient care, medical research, or testing during the COVID-19 pandemic.
- Frontline health care workers encompass a wide range of medical professions, including doctors, nurses, medical researchers, and lab technicians, who directly contributed to the COVID-19 response.
- The population size includes those who hold federal and private student loans, which are typical among medical professionals due to the high cost of education.
- The bill has a retrospective effect as it includes workers who contributed during the COVID-19 emergency and those who have died as a result of the pandemic.
Reasoning
- The policy is designed to target a specific subset of the population—frontline health care workers with student loans. This narrows the focus to individuals significantly burdened by educational debt, which is common in the medical field due to the extensive and costly nature of required education.
- The budget constraints imply that there is a cap on the number of people who can benefit from this policy, making it crucial to select participants who are both eligible and significantly tuition-burdened.
- Given the nature of the policy, it implies retrospective eligibility, which means that both current and past individuals who have served in frontline roles during the COVID-19 emergency could be covered.
- There is an emphasis on not just those alive but also on compensating families of those who died due to COVID-19, reflecting a holistic approach toward those affected in the line of duty.
- By excluding discharged debt from taxable income, the policy maximizes the relief offered to individuals, as they do not incur additional tax burdens from forgiven loans.
Simulated Interviews
Nurse (New York, NY)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- With this policy, I can finally see a light at the end of the tunnel regarding my debts. It gives me hope and a chance to financially stabilize.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 8 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 9 | 5 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Medical Researcher (Los Angeles, CA)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 4/20
Statement of Opinion:
- The loan forgiveness is a massive relief. It’s a recognition of the sacrifices made by many like myself.
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 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Laboratory Technician (Houston, TX)
Age: 41 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Forgiving my loans would significantly reduce my stress and allow me to focus better on my job.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Paramedic (Miami, FL)
Age: 38 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- While my student loans aren’t huge, this forgiveness would still be life-changing financially.
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 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Respiratory Therapist (Chicago, IL)
Age: 26 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 15.0 years
Commonness: 7/20
Statement of Opinion:
- This policy changes everything for me. I can now plan for my future without this debt looming over.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 4 |
| Year 2 | 7 | 4 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Pharmacist (Seattle, WA)
Age: 47 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- This refund would be like winning a small lottery, helping me focus on savings and retirement.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 7 |
Doctor (Denver, CO)
Age: 32 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- The medical field is not a financially forgiving one despite our roles during crises. This policy respects our sacrifices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 10 | 8 |
| Year 20 | 10 | 8 |
Nurse Practitioner (Phoenix, AZ)
Age: 55 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- While I don't benefit directly from this policy, I think it's a great move to support my colleagues who are still struggling with debt.
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 |
Public Health Official (San Francisco, CA)
Age: 37 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Management roles are often overlooked but critical. This policy feels like a validation of our contributions.
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 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 7 |
Medical Student Intern (Boston, MA)
Age: 22 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- Knowing there's a system in place that can support us financially is reassuring as I plan my medical career.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Cost Estimates
Year 1: $60000000000 (Low: $50000000000, High: $70000000000)
Year 2: $10000000000 (Low: $8000000000, High: $12000000000)
Year 3: $5000000000 (Low: $4000000000, High: $6000000000)
Year 5: $3000000000 (Low: $2000000000, High: $4000000000)
Year 10: $1000000000 (Low: $500000000, High: $1500000000)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The administrative cost to implement and manage this policy across federal and private student loan systems is significant.
- Determining eligibility will require coordination between multiple governmental departments and potentially private loan servicers.
- There could be long-term political and public perception implications of broadly forgiving debt for a specific group.