|Posted:||April 24, 2020 01:03 PM|
|From:||Representative Jason Dawkins|
|To:||All House members|
|Subject:||A Resolution urging Congress to furlough all federally backed loans until the COVID-19 crisis is over|
|The ongoing COVID-19 pandemic has proven that families all across this country are facing serious financial hardships. Millions of Americans are understandably very concerned about their future, and that is especially true for Pennsylvania. From mortgage loans to student loans, people all across the Commonwealth need all the assistance they can get.
Presently under the CARES Act signed by President Trump on March 27 2020, borrowers who have federally backed mortgages are able to request a period of temporary loan forbearance just twice, each length of time being 180 days. Those with a broad range of student loans backed by the federal government get an automatic suspension of payments and a reduction of interest payments through September 30, 2020.
While this relief is very helpful to those eligible, it is not a long term solution and many still have questions about what happens with loan payments when the forbearance periods end.
That is why I will be introducing a resolution urging Congress to take action with legislation to furlough all federally backed loans of this nature until the COVID-19 crisis is over. All missed payments should be applied at the end of the amortization calendar, not when the pandemic is over, and with no negative impacts on interest payments.
Please join me in this effort and support this resolution.