Bill would allow students entering workforce to defer federal loans for up to three years
WASHINGTON— With students across the country graduating amid an economic downturn as a result of the coronavirus pandemic, U.S. Senator Mitt Romney (R-UT) introduced the COVID-19 Graduate Relief Act on Friday, legislation that would make students graduating this year eligible for a deferment of their federal loans for up to three years. The legislation builds on the Administration’s announcement Friday that the education department would allow federal student loan borrowers to suspend payments for at least 60 days without penalty.
“Students graduating from college this year are suddenly facing significant hurdles entering the workforce,” Senator Romney said.“The Administration took a strong step in helping students across the country today by suspending student loan payments for 60 days. We must further ease the burden on students by allowing them to defer their payments until the economy regains normalcy.”
The COVID-19 Graduate Relief Act:
- Makes a student who graduates from college during the period beginning on January 1, 2020 and ending on December 31, 2020 eligible for a federal student loan deferment of up to three years.
- Gives Secretary of Education authority to extend eligibility to 2021 and 2022 graduates if the Secretary determines the anticipated economic impact of the coronavirus on graduates of that year necessitates such an extension.