The $3 trillion coronavirus aid package Democrats introduced Tuesday calls for the Treasury to make payments of up to $10,000 per student loan.
The proposal, which Democrats plan to vote on Friday, calls for Treasury to make student loan payments until September 2021. Any unused portion of the $10,000 would be applied to the outstanding loan balance if it’s not reached by the 2021 deadline.
Senate Democrats earlier this year proposed the cancellation of student loan payments during the coronavirus pandemic in addition to wiping out at least $10,000 in student loan debt.
The $2.2 trillion coronavirus aid package President Trump signed into law on March 28 temporarily suspends some student loan payments without interest but does not eliminate debt.
Student loan relief has long been a top wish list item for Democrats.
Sen. Elizabeth Warren, a former Democratic presidential candidate and a candidate to become presumptive Democratic presidential nominee Joe Biden’s running mate, proposed the federal government cancel up to $50,000 in debt for 95% of student loan borrowers.
The student loan payments are part of a sweeping federal aid proposal Speaker Nancy Pelosi announced on Tuesday.
The measure would provide $1 trillion to state, local, and municipal governments as well as a bailout for troubled pension programs and the post office. It would also provide rent and mortgage payments, new direct cash payments, extended unemployment insurance, hazard pay for some workers, and funding, as well as a requirement for states to provide mail-in ballots in the November 2020 elections and beyond.
Senate Majority Whip John Thune said the Senate won’t take up the House spending bill and called it “nothing more than a messaging exercise by House Democrats.”
Thune told reporters on Tuesday, “It’s not going anywhere.”