# Student Loan Borrower Safety Net Act of 2023

When the government paused student loan payments during the COVID-19 pandemic, millions of borrowers got a break from making monthly payments. This bill is designed to help people transition smoothly when those payments start again, especially those who struggled with their loans before the pandemic hit.

The core idea is to give borrowers extra support and information during the restart period. The government would send borrowers at least six separate notices through mail, phone, or email explaining when payments resume, what income-based repayment options exist, and what to do if they're in default. The bill prioritizes reaching out to people who had payment problems before the pandemic—those who missed payments, defaulted, or repeatedly struggled to keep up. These borrowers would get even more contact attempts to make sure they understand their options.

The bill also makes it easier for borrowers to switch to more affordable repayment plans. For one year after payments restart, people can apply for income-driven repayment plans by simply stating their income and family size without needing to provide documentation. If someone faces financial hardship, they can request a deferment for up to a year just by certifying their hardship in writing, over the phone, or online. Additionally, if a borrower misses a payment in the first 60 days after payments restart, their loan goes into administrative forbearance for 90 days—meaning no penalties accrue—while the servicer contacts them at least six times to discuss their options.

Essentially, this bill creates a safety net for the transition period by ensuring borrowers know their options, have time to adjust, and won't immediately face default consequences if they stumble during the restart.

Student Loan Borrower Safety Net Act of 2023

Bonamici, Suzanne

Student Loan Borrower Safety Net Act of 2023 This bill requires the Department of Education (ED) to carry out a program to notify borrowers that normal payment obligations on their federal student loans will resume. Not later than 60 days before payment obligations are no longer suspended (as determined by ED), ED must provide at least six notices to borrowers indicating that their payment obligations will resume. These notices must also indicate the options for (1) enrolling in income-driven repayment plans, (2) participating in ED's Fresh Start program (this program offers special benefits for borrowers with defaulted federal student loans), and (3) rehabilitating or consolidating loans. ED must provide priority notification to certain borrowers, including those who missed a payment in the first three months of entering repayment on a loan. The bill allows borrowers to (1) submit an application or reapplication for an income-driven repayment plan and self-certify their income and family size, (2) change their repayment plan without a fee, and (3) apply for an economic hardship deferment. If a borrower misses a payment or payments on a loan during the 60 days after the payment suspension ends, then the loan must be held in administrative forbearance for 90 days.