COVID-19 Student Loan Relief Act (CSLRA) of 2020

COVID-19 Student Loan Relief Act (CSLRA) of 2020

This bill allows student loan debt to be discharged in bankruptcy if (1) the debtor's income has declined by a specified amount during the COVID-19 (i.e., coronavirus disease 2019) outbreak or as a result of the outbreak, or (2) the primary income earner of the debtor's family died or became seriously disabled as a result of COVID-19.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7655 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 7655

To amend title 11 of the United States Code to make dischargeable debts 
for educational loans of certain debtors whose income has been reduced 
for the duration of or as a result of the COVID-19 outbreak or who have 
           a family member who died as a result of COVID-19.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 16, 2020

  Ms. Scanlon (for herself, Mr. Nadler, Mr. Cicilline, Mr. Garcia of 
  Illinois, Ms. Adams, and Mr. Vargas) introduced the following bill; 
          which was referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To amend title 11 of the United States Code to make dischargeable debts 
for educational loans of certain debtors whose income has been reduced 
for the duration of or as a result of the COVID-19 outbreak or who have 
           a family member who died as a result of COVID-19.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``COVID-19 Student Loan Relief Act 
(CSLRA) of 2020''.

SEC. 2. DISCHARGEABLE EDUCATIONAL LOANS.

    Section 523 of title 11 of the United States Code is amended by 
adding at the end the following:
    ``(f) Subsection (a) shall not apply with respect to a debt of the 
kind described in paragraph (8) if--
            ``(1) the pre-tax income for a calendar year of the debtor 
        has declined--
                    ``(A) by at least 20 percent, and the prior income 
                of the debtor was less than $75,000 per year;
                    ``(B) by at least 30 percent, and the prior income 
                of the debtor was between $75,000 and $125,000; or
                    ``(C) by at least 40 percent, and the prior income 
                of the debtor was not less than $125,000;
        beginning January 21, 2020 and extending until 60 days after 
        the duration of the COVID-19 Emergency or the duration of the 
        COVID-19 outbreak or as a result of the COVID-19 outbreak; or
            ``(2) the primary income-earner of the debtor's family died 
        or became seriously disabled as a result of COVID-19.''.
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