The proposal would require the government to make the monthly payments for everyone with federal student loans, wiping away some of their debt.
It guarantees a minimum of $10,000 in debt relief per borrower. If that amount isn’t met by the end of the national emergency, the proposal requires the government to make additional payments on behalf of the borrower. There is no cap to the relief, and a Warren spokeswoman did not immediately respond when asked how much the proposal would cost.
The plan would also halt interest accrual, as well as collections on debts — including wage or tax refund garnishment — for borrowers in default. It calls for implementing a three-month grace period once the national emergency ends, during which fees would be waived for late payments.
Last week, President Donald Trump said he would waive the interest on federal student loans because of the pandemic, but the move is unlikely to immediately lower borrowers’ monthly payments and would instead end interest accumulation for the time being — resulting in savings over the long run.