# Income-Driven Student Loan Forgiveness Act

This bill would wipe out federal student loans for people who meet certain income and employment requirements. Specifically, if you're single and earn $100,000 or less per year, or married and earn $200,000 or less combined (or $100,000 if filing taxes separately), you could have your undergraduate federal student loans completely forgiven—meaning you'd owe nothing, and the debt would simply disappear. The forgiveness would cover all the money you still owe, including the original loan amount, any interest that's accumulated, and any fees.

To qualify, you'd need to have actually borrowed federal student loans for your undergraduate education before this bill becomes law, and you'd need to have filed a tax return for the most recent year. You also have to either be currently employed or have worked at some point during the three years before March 2020. Once you apply and the Department of Education confirms you meet these requirements, they'd cancel your loans entirely—whether those loans are held directly by the government or by private lenders. Importantly, the forgiven amount wouldn't count as taxable income, so you wouldn't face a surprise tax bill from the forgiveness.

The bill specifically covers undergraduate loans made through federal student loan programs, including consolidation loans that were used to pay off undergraduate debt. It does not cover graduate school loans or loans taken out by parents for their own education, though it does cover Parent PLUS loans used for a dependent's undergraduate education. The Department of Education would have to notify borrowers about this program within 15 days of the law passing, making sure people know they need to submit an application to receive the forgiveness.

Income-Driven Student Loan Forgiveness Act

Lawson, Al, Jr.

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.