House Passes Policy Championed by Bonamici to Help Student Loan Borrowers Avoid Default

WASHINGTON, DC [12/10/19] – Today the House passed legislation that included an improvement long championed by Congresswoman Suzanne Bonamici (D-OR) to help student loan borrowers avoid default.

The FUTURE Act, H.R. 5363, contains a provision that will allow the secure, direct transfer of taxpayer data from the Internal Revenue Service to the Department of Education to enroll and re-enroll borrowers in income driven repayment plans (IDR). It will also remove burdensome paperwork requirements for borrowers who are totally and permanently disabled.

Video of Bonamici speaking in support of the legislation on the House floor can be found here.

"This change will make a big difference for borrowers," Congresswoman Suzanne Bonamici said on the House floor. "We know that borrowers with small loan balances are more likely to default than borrowers with six-figure debts. Those who owe less than $10,000 are most likely to default. They are less likely to have completed their degrees and are often burdened by low incomes or unemployment.

"I've heard from numerous borrowers in NW Oregon who describe loan repayment as anxiety inducing, daunting, and overwhelming and heard from several constituents who faced financial consequences for missing the deadline to annually recertify their income for income-driven repayment plans," Bonamici continued. "This change will protect many borrowers from default by getting and keeping them in manageable IDR plans."

Bonamici has long advocated for secure, direct data sharing between these two federal agencies in her SIMPLE Act, which was included as part of the College Affordability Act.

The FUTURE Act also includes critical support for HBCUs and Minority Serving Institutions, increases for Pell funding, and many other provisions Bonamici has fought for.

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