Provide student loans for COVID-19 healthcare workers

Should frontline health professionals fighting the COVID-19 pandemic get student loans?

Here’s what you need to know.

Student loan forgiveness

Rep. Carolyn Maloney (D-NY) will enact new laws to waive student loan debt for frontline health workers fighting the COVID-19 pandemic. the Maloney said the Student Debt Forgiveness for Frontline Health Care Workers Act will reduce the financial burden on healthcare professionals and help attract other health care workers to respond to COVID-19.

“Healthcare professionals in hospitals and other medical facilities work in exceptionally difficult and dangerous circumstances to care for critically ill COVID-19 patients and protect our communities,” said Maloney. “… The least we can do to get their service recognized is to cancel their student loan debt so they don’t have to worry about their financial well-being in addition to their health and the health of their families while they respond to a public health emergency. “

How it works

The law on debt relief for frontline health students would work like this:

• Student Loan Debt: Eliminate only graduate school debt (not student loan debt);
• Eligibility to participate: Applies to Healthcare workers (both graduates and seasoned professionals) providing direct patient care in response to the COVID-19 pandemic; and
• Who else benefits: nDoctors, physicians and other health professionals who have treated COVID-19 patients would also qualify.

background

The proposed legislation has its roots in a MoveOn.org petitionwhich has reached 500,000 signatures. The organizer of the petition, Consuelo Lopez-Morillas, urges the Congress to Student loans waived for all members of the health professions in the next economic stimulus package or rescue package. Lopez-Morillas compares them to “soldiers in a war,” writes Lopez-Morillas that if student loan waivers were implemented, more health professionals would be willing to work in poorly paid specialty areas or in rural or underserved areas.

Public sector lending

Healthcare professionals such as doctors, nurses, and paramedics who already work for skilled employers can use the Public Sector Loans Program. Founded in 2007 by President George W. Bush, this program allows student loan borrowers who work full-time for a public service or a nonprofit employer to: Get federal student loan forgiveness. This raises several questions about the Student Debt Forgiveness Law for frontline health workers, especially as Congress debates its merits:

• Will the proposed bill cover federal debt only or private student loan debt as well?
• The Public Service Loan Forgiveness program offers student loans for both student and graduate debts. Is there any chance that this new proposal could be amended to include elementary school debts?
• The Public Service Loans Program requires, among other things, 120 monthly payments. How do the other requirements beyond treating COVID-19 patients compare?
• What about other health professionals who are also on the front lines but not treating COVID-19? Can you waive a student loan?
• What about other health professionals currently seeking public service loans (but not on the front lines as defined in this proposal)? Do you have to wait for 120 monthly payments to receive the student loan?

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