As the economy continues to suffer during the COVID-19 pandemic, lawmakers are increasingly aware that the reimbursement student loans becomes difficult if not impossible for millions of student loan borrowers.

the protections provided by the CARES law, although important, provide only temporary relief (in the form of suspended interest, payments and collections). Consumer advocates fear borrowers will not be able to repay their student loans after this temporary program expires.

As a result, lawmakers highlight proposal after proposal forgive definitely student loan debt. But every bill proposed so far is very different. As a result, it can be difficult for student loan borrowers to keep up with a situation that changes so rapidly.

Here’s a breakdown of the top five student loan forgiveness proposals to date.

Relief for essential workers

This proposal would provide a student loan waiver and other relief to “essential workers”. The bill is called the Opportunity for Heroes Act, Sponsored by Rep. Ann Kuster (D-NH). Here is how it works.

• Essential workers would receive $ 25,000 for canceling their student loans.
• Alternatively, eligible workers could also use the funds for tuition, continuing education, or job training.
• “Essential workers” would include healthcare workers, first responders, pharmacy workers, grocery store workers and postal workers, among other occupations.
• Federal and private student loans would be eligible for the forgiveness.
• The reward would not be taxed as income.

Relief for medical workers

This bill would provide forgiveness of student loans to frontline medical workers. The law project, Sponsored by Representative Carolyn Maloney (DN.Y), is called the “Frontline Health Care Worker Student Loans Forgiveness Act.“Here’s what that would do:

• All federal and private student loans would be canceled medical workers caring for patients with COVID-19. There is no cap on the cancellation of student loans.
• Doctors, nurses, aides, resident doctors, interns, technicians and researchers would be eligible.
• The forgiven student loan balance would not be treated as “taxable income” for the borrower.

Universal student loan forgiveness (Senate version)

Democratic senators lobbied for general cancellation of student loans. Their plan includes these details:

• The government would pay up to $ 10,000 in regular student loan payments on behalf of borrowers.
• Only direct federal student loans and FFEL program loans would be eligible. Private loans would not be eligible.
• The $ 10,000 would not be treated as “taxable income” for the borrower.

Democratic senators have failed to get these conditions included in the CARES law, but they are still asking for similar relief for borrowers.

Universal student loan forgiveness (home version)

This bill, called the Emergency Student Debt Relief Act, would offer a general discount on student loans. Sponsored by women of Congress Ayanna Pressley and Ilhan Omar, this proposal goes far beyond that of the Senate:

• $ 30,000 in federal student loans would be canceled. Private student loans would not be eligible.
• The $ 30,000 would not be treated as “taxable income” for the borrower.
• For student loan borrowers who continue to have student loan repayments even after the cancellation of $ 30,000, the government would take over their monthly payments for the duration of the national emergency so borrowers can stay on track. way for loan forgiveness programs or loan repayment.

Biden Student Loan Forgiveness Plan

Former Vice President Joe Biden, the alleged Democratic presidential candidate, has developed their own student loan forgiveness plan. But his plan differs from the others on essential points.

• Biden’s proposal would write off all federal undergraduate student loan debt for some borrowers. Typically, federal undergraduate student loan debt averages just under $ 40,000, although in some cases it can reach as high as $ 60,000. Student loans for graduate programs would not be covered, as would private student loans.
• Eligibility would be limited to borrowers attending public colleges and universities, as well as historically black colleges and universities (HBCU) and private institutions serving minorities (MSI). Borrowers who have attended traditional private colleges and universities that do not meet these criteria would not be eligible.
• Eligibility would further be limited to borrowers earning less than $ 125,000 per year. Borrowers who earn more than this limit would not be eligible for a loan forgiveness.

To take away

Here are some takeaways from the above proposals:

Does the plan have a cap on forgiveness of student loans?

• Hero Opportunity Act (Essential Workers): YES
• Frontline Healthcare Worker Student Loans Forgiveness Act: NO
• Senate Plan: YES
• Emergency Student Debt Relief Act: YES
• Biden’s plan: YES

Does the plan restrict eligibility for certain occupations?

• Hero Opportunity Act (Essential Workers): YES
• Frontline Healthcare Worker Student Loans Forgiveness Act: YES
• Senate Plan: NO
• Emergency Student Debt Relief Act: NO
• Biden’s plan: NO

Does the plan restrict eligibility based on income?

• Hero Opportunity Act (Essential Workers): NO
• Frontline Healthcare Worker Student Loans Forgiveness Act: NO
• Senate Plan: NO
• Emergency Student Debt Relief Act: NO
• Biden’s plan: YES

Does the plan cover private, as well as federal, student loans?

• Hero Opportunity Act (Essential Workers): YES
• Frontline Healthcare Worker Student Loans Forgiveness Act: YES
• Senate Plan: NO
• Emergency Student Debt Relief Act: NO
• Biden’s plan: NO

And perhaps the biggest thing to remember is this: No proposal has, so far, garnered enough support to be passed by both houses of Congress and enacted by the president. This situation is changing rapidly, however, stay tuned.