Costello, Bonamici Introduce Bill To Reduce Burden of Student Loans

Press Release

Rep. Ryan Costello (PA-06) and Rep. Suzanne Bonamici (OR-01) introduced the Streamlining Income-driven, Manageable Payments on Loans for Education (SIMPLE) Act today, legislation that will assist millions of Americans carrying student loan debt.

For many Americans, student debt is the first type of debt they incur, but it can be debilitating, leaving them unable to invest in their future even if they are fortunate enough to secure a well-paying job after graduation. Defaults are most prevalent, however, among borrowers who have less than $5,000 in debt, and delinquency on student debt can lead to long-term financial hardship and difficulty accessing credit to purchase a car or home.

The SIMPLE Act would assist borrowers who are on the verge of default by notifying them of more affordable repayment plans for which they are eligible, allowing borrowers to make an informed decision that is best for them. This bill would also help severely delinquent borrowers avoid default by establishing a process to automatically enroll them in income-driven repayment plans with lower monthly payments.

Further, this bill would use the information borrowers already have on file at the IRS to automate the income recertification process and allow borrowers in income-based repayment plans to continue making affordable payments.

"Millions of Americans carry substantial student loan debt that leaves them unable to invest in their future, and our legislation will responsibly relieve some of that burden by streamlining certain loan payment options," said Rep. Ryan Costello. "Under our bill, the Department of Education would auto-enroll certain borrowers who have missed payments into a lower monthly payment plan in order to reduce administrative burdens and decrease the risk of those borrowers being placed into more expensive plans. I look forward to advocating for this commonsense legislation and thank Rep. Suzanne Bonamici for her leadership on this issue."

"Many people struggle to manage student loan payments with competing expenses like housing and child care, but repayment plans based on income can help make payments affordable and safeguard borrowers' credit," said Rep. Suzanne Bonamici. "Our bipartisan, commonsense legislation will protect a lot of people from default by making these plans easier to access and by automatically updating income information. The SIMPLE Act is one important step toward making higher education accessible and affordable for all Americans."

This bipartisan legislation already has the support of the Pennsylvania Higher Education Assistance Agency (PHEAA), the Pennsylvania Association of Student Financial Aid Administrators (PASFAA), and the National Education Association (NEA).

You can watch Rep. Costello's floor speech on the SIMPLE Act here, Rep. Bonamici's floor speech here, and read a summary of the bill here.

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