Income-Driven Student Loan Forgiveness Act
This bill requires the Department of Education (ED) to forgive the outstanding balance of principal, interest, and fees due on federal student loans for eligible borrowers who meet certain income requirements.
Eligible borrower refers to an individual who (1) has an eligible federal student loan in repayment, (2) filed a federal income tax return for the most recent tax year, (3) is employed or was employed during the three-year period immediately preceding March 1, 2020, and (4) meets income requirements (e.g., an adjusted gross income of $100,000 or less for a borrower who is not married). Further, the borrower must submit an application to ED for loan forgiveness.
The bill prohibits borrowers from receiving refunds for any previously made payments.
Further, the bill specifies the notification requirements related to the availability of loan forgiveness.
The bill also excludes discharged student loan debt from an individual's gross income for tax purposes.