Rubio Seeks To Delay Payment Of Student Loan To Survivors After Terrorist Attack

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  • Senator Marco Rubio has again introduced a bill to defer student loan payments to survivors of the terrorist attacks.
  • He first introduced the bill in 2016 after the shooting at the Pulse nightclub in Orlando.
  • Lawyers said his bill was insufficient to address the $ 1.7 trillion student debt crisis.
  • See more stories on the Insider business page

Due to the suspension of student loan payments during the pandemic, which is due to end in three months, Florida Senator Marco Rubio reintroduced a bill to defer these payments for an additional year – but only if the borrower survived a terrorist attack.

Rubio re-introduced last week Deferred Terrorism Survivor Student Loan Act, which would allow survivors of terrorist attacks to receive automatic deferrals for federal student loan payments. He first enacted this law in 2016 after the shooting at the Pulse nightclub in Orlando to help survivors in the shooting.

“We must do everything in our power to help those who survived the terrorist attack to return to normal life,” Rubio said. statement… “While survivors such as victims of the horrific shooting at the Pulse nightclub may be eligible for some relief following a terrorist attack, the existing law does not automatically account for such extraordinary circumstances. Giving survivors some time to regroup, delaying student loan payments is just common sense. “.

According to the press release, Rubio’s legislation:

  • Provide a one-year break in student loan payments for survivors;
  • Instruct the secretary of education to establish fraud protection;
  • And appoint a federal agency charged with investigating the terrorist attack to be responsible for identifying the victims.

Any survivor with federal loans will be eligible for deferred payment.

Advocates for student loan borrowers criticized Rubio for not going further in search of a solution to the $ 1.7 trillion student debt crisis. Student Debt Crisis, an organization that pushes for student debt cancellation, wrote tweeted last week that Rubio’s bill is “wrong” and that Americans need a serious solution to the student debt crisis.

However, this is not the first law Rubio has introduced to address the issue of loan forgiveness to one degree or another. Insider reported In April, Rubio, along with New Hampshire Senator Maggie Hassan, introduced a bill to make it easier for military personnel to obtain loan forgiveness through the Public Service Loan Forgiveness (PSLF) program, where borrowers can participate in income-adjusted repayment plans that could lead to loan forgiveness through 10 years.

The PSLF’s failure rate is still 98%, so legislation is likely to be ineffective as long as the Department of Education implements reforms to the program.

Rubio’s office did not immediately respond to Insider’s request for comment.

Rubio’s legislation came about as Democratic lawmakers insist that President Joe Biden write off $ 50,000 student debt for each borrower – which they believe will be far more effective for borrowers than debt forgiveness only for certain groups of people, such as survivors of terrorist attacks.

At an event hosted by the student debt crisis, Senate Majority Leader Chuck Schumer said he met with Biden about this and told him that they would ruthlessly seek forgiveness of student debts.

“We said, ‘We will continue until you do this,’ and his [Biden’s] credit, he said, “Come on.” He talked about 10 thousand – that’s not enough, – said Schumer during the event. “We continue to put pressure on him.”



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