Coronavirus, COVID-19, Debt Relief, student loan debt

New Legislation Provides Student Loan Forgiveness to Frontline Healthcare Workers

Healthcare workers on the frontlines are putting their lives at risk every day during the coronavirus (COVID-19) pandemic, which has many asking what can be done to financially help these dedicated individuals.

Rep. Carolyn Maloney (D-NY) plans to introduce new legislation that will do just that by forgiving outstanding student loan debt carried by these frontline healthcare workers. The legislation is titled The Student Debt Forgiveness for Frontline Health Care Workers Act. The hope behind this new legislation is that by forgiving student loan debt for these workers, a large financial burden will be lifted. Additionally, this incentive could possibly drive others to join the healthcare industry and continue the fight against COVID-19.

A great number of frontline healthcare workers carry thousands to tens of thousands in student loan debt from undergraduate and graduate studies. Rep. Maloney has stated that the legislation is meant to not only recognize the sacrifice these workers have made but to also rid them of the insurmountable burden of student loan debt.

The legislation focuses on the graduate school debt only, which arguably constitutes the large majority of student loan debt carried by healthcare workers. To be eligible, the applicant must be employed in the healthcare industry, including those who have recently graduated, as well as those who have been working for quite some time. The workers must be providing direct patient care for individuals afflicted by COVID-19. Healthcare workers include nurses, doctors, as well as other healthcare professionals.

The drive behind the legislation came from a online petition that had reached the required 500,000 signatures. The writer of the petition was Consuelo Lopez-Morillas, who compared healthcare workers to “soldiers in a war,” fighting COVID-19. The petition stated that if loan forgiveness were implemented, these healthcare professionals would be more likely to work in specialties that are considered lower paying and service patients in both rural and urban areas.

More details will come out as the legislation is presented, and amendments are likely to be offered as the legislation enters debate. However, the introduction of this legislation does signal support coming from government officials for the hard work and sacrifice these medical professionals are making.

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For borrowers who are struggling with student loan debt, relief options are available.  Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at


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