This paper starts by grounding readers in the consequences of student loan default, who is in default and why, and why so many borrowers remain in default for years. It then identifies legal authority, under existing regulations, that empowers the Secretary of Education to compromise student loan debts and so end collection from defaulted borrowers where such efforts would be futile or unreasonable. Now—before the suspension of federally-held student loan collection ends next year—is the time to act on that authority.
Comments in Response to the U.S. Department of Education’s Proposed Income-Driven Repayment Plan (IDR) Request Form
On behalf of our low-income clients, the National Consumer Law Center submits these comments in response to the U.S. Department of Education’s request for comments on the proposed income-driven repayment (IDR) plan request form. Our comments reflect our expertise in the applicable IDR regulations as well as our experience working directly with low-income borrowers applying…
This letter from organizations representing students, workers, civil rights organizations, consumers, low-income borrowers, and researchers sets forth strong opposition to efforts to use the Congressional Review Act (CRA) to overturn the Biden-Harris Administration’s new rule implementing the Saving on a Valuable Education (SAVE) Plan for federal student loan borrowers. Over 4 million Americans across the…
Comments in Response to the U.S. Department of Education's Proposed Total and Permanent Disability Discharge Application Form
On behalf of our low-income clients, the National Consumer Law Center submits these comments in response to the U.S. Department of Education’s request for feedback on the proposed application form for the Total and Permanent Disability (TPD) Program. Our comments reflect our experience working directly with low-income borrowers applying for TPD discharge and other federal…
This one-pager helps students who are attending a school that closed or is about to close figure out what to do next with their federal and private loans.
NCLC Comments to Education Department Regarding Intent to Establish Rulemaking Committee on Student Debt Relief
The National Consumer Law Center (on behalf of its low-income clients), submitted comments in response to the U.S. Department of Education’s announcement of its intent to establish a negotiated rulemaking committee to prepare regulations on federal student loan debt relief, as authorized under the Higher Education Act of 1965 (HEA). In these comments, NCLC recommends…