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Senator Lamar Alexander announces “No Income, No Monthly Payment” plan for student loan borrowers

Senator Lamar Alexander announced Tuesday a "No Income, No Monthly Payment" plan for 43 million student loan borrowers.
(AP Photo/Susan Walsh)
(AP Photo/Susan Walsh)(WVLT)
Published: Jul. 21, 2020 at 9:00 PM EDT|Updated: Jul. 21, 2020 at 10:58 PM EDT
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KNOXVILLE, Tenn. (WVLT) -Senator Lamar Alexander announced Tuesday a “No Income, No Monthly Payment” plan for 43 million student loan borrowers.

According to a release, students loan borrowers will be able to continue deferring monthly payments after Oct. 1 if they have no income.

“In March, Congress deferred student loan payments for six months, but without congressional action, payments will resume starting October 1,” Alexander said today on the Senate floor. “October 1 is just around the corner. What do we say to those 43 million student loan borrowers today?”

“I propose that we say this: Number One: No Income: No monthly payment. In other words, if you have a student loan, your monthly payment is zero if you do not have any income, for whatever reason. Number Two: When you do begin earning income, your monthly payment will never be more than 10 percent of your income after you deduct the necessities of life, such as the cost of housing such as rent or mortgage and food,” Alexander continued.

For more information on Senator Alexander’s full remarks introducing the Student Loan Repayment and FAFSA Simplification Act visit the website here.

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