Press Releases

Washington, D.C. – This week, Congresswoman Mary Gay Scanlon (PA-05) joined Senator Jeff Merkley (D-OR), Senator Maggie Hassan (D-NH), and House Appropriations Chair Rosa DeLauro (CT-03) in announcing the introduction of the Affordable Loans for Any Student Act of 2022, comprehensive legislation that would ensure affordable, simple income-based repayment plans for all federal student loan borrowers.

The Affordable Loans for Any Student Act of 2022 would give all federal student loan borrowers an option to structure their loan so that they pay 10% of any income they earn above the poverty level until their loan is paid off or until they have made 20 years of payments, whichever comes first. That option would give borrowers the flexibility to pursue public service, artistic careers, entrepreneurial initiatives, or other lower-paying jobs without fear of defaulting on loans. 

“The student debt crisis has left American borrowers with over $1.6 trillion in student loan debt, and Pennsylvania borrowers hold some of the highest student debt in the nation,” said Rep. Scanlon. “This crippling burden prevents people from realizing the full potential of their degrees or participating in our economy. And the financial struggles that many have faced over the past two years have only exacerbated this crisis. I’m proud to champion this bill that takes action to provide comprehensive, long-term solutions to make higher ed more affordable and simplify the repayment process for student borrowers.”

“Every young person in America should have the opportunity to get a good education without getting trapped into a lifetime of student loan debt,” said Congresswoman Rosa DeLauro. “Young college graduates with good jobs are struggling to make the first big investments in their lives like buying a home, or even to purchase necessities and pay rent because of the debt that they hold. For our next generation to fulfill their dreams, contribute to economic innovation and create a prosperous future for themselves and their families, we must simplify the repayment process and make it more affordable for student borrowers. Congress has an obligation to solve it, which is why I am proud to introduce the Affordable Loans for Any Student Act with Senators Merkley and Hassan.”

“Higher education should create a path to opportunity, not a ball and chain of debt hanging around young Americans’ necks,” said Merkley. “I come from a blue-collar family and am a first-generation college graduate. I know firsthand that affordability is a major factor — in fact, often the biggest factor — in whether middle class students are able to obtain the benefits of higher education. Right now, our student debt crisis is holding our whole nation back. Many young Americans are putting off buying houses, starting businesses, or even starting a family because of their student loan burden. This is bad for our communities and terrible for our economy. It’s time we had a simple, easy-to-use repayment system that ensured every student has an affordable loan option.”

“Student loan debt is burdening young Americans and dragging our economy down with it," said Hassan. “This commonsense bill will help make it easier for borrowers to make their payments while giving them the freedom to pursue their careers — whether that is to start their own business or enter into public service. We must take action to help ensure that borrowers are not crushed by the weight of student debt, and this bill is one important step to help do just that.”

The average college senior who borrows now graduates with nearly $30,000 in debt and total student debt nationwide sits at $1.6 trillion and growing. Borrowers with federal student loans also face few easy choices in managing their debt, from being forced to navigate unnecessary fees to a maze of repayment plans, paperwork, and confusing terminology. There are at least four income-based repayment plans and dozens of confusing iterations, which, unfortunately, results in far too many borrowers failing to discover or successfully maintain income-based repayment until it’s too late.

Specifically, the Affordable Loans for Any Student Act of 2022 would overhaul the confusing system of income-based repayment plans to give borrowers a simple choice between two plans: 

• A Fixed Repayment Plan with equal monthly payments sufficient to repay the loan and any accrued interest over a period of 10 years; or 
• An Income-Based Repayment (IBR) Plan in which a borrower pays 10 percent of their income above a poverty level, capped at 20 years of payments. 

In addition to streamlining repayment plans for borrowers, the bill: 

• Ends interest capitalization and origination fees on Federal Direct Loans. 
• Targets assistance to struggling and low-income borrowers. 
• Allows for automatic recertification of income for IBR plans. 
• Limits federal debt collection amounts that are obtained through wage garnishment or tax offset to no more than the amount the borrower would pay under IBR. 
• Replaces the current deferment and forbearance options into one, streamlined “pause payment” process that does not capitalize interest. 
• Provides relief to severely delinquent borrowers and those who rehabilitate their loans by automatically enrolling them into the IBR plan. 
• Changes the use of the confusing term “master promissory note” to “student loan contract” to improve consumer understanding of the purpose of the document. 
• Improves other loan disclosures and interactive counseling to make students more aware of federal student aid and repayment options. 

The Affordable Loans for Any Student Act is officially endorsed by The Institute for College Access & Success (TICAS) and Consumer Action.

“While completing a college degree remains a strong investment for most, far too many students struggle with student loan repayment,” said Sameer Gadkaree, President, The Institute for College Access & Success. “The Affordable Loans for Any Student Act will make repayment more affordable, help prevent default, and simplify repayment options. We applaud Senator Merkley and Chair DeLauro for their leadership on this bill.” 

“Even the most savvy student loan borrowers can have problems navigating their repayment options," said Linda Sherry, Consumer Action’s director of national priorities. "The Affordable Loans for Any Student Act would ensure loan terms are written in consumer-friendly language, simplify income-based repayment, and limit aggressive debt collection practices. The bill provides incentives for more reliable, affordable repayment choices."

Find the full bill text  here.

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