Federal Student Loans Archives

Op-Ed in The Hill: Ending the black hole that’s devouring student loan payments

January 18, 2023

Early in Aubrey Plaza’s recent movie, Emily the Criminal, her character is seen calling her student loan servicer, between food delivery shifts, to ask why her recent $400 payment wasn’t applied to her balance. She is stunned by the response: “It was applied to my interest? Sorry, how much interest is being added a month?” The…

Brief in Biden v. Nebraska & Brown v. U.S. Department of Education

January 11, 2023

COVID-19 has made cancellation a necessity for student loan borrowers, writes borrower advocates, including NCLC, and legal aid organizations in a brief submitted to the U.S. Supreme Court. By tailoring the student debt relief to reduce the prospect of widespread defaults upon a return to repayment, the Department acted well within its HEROES Act authority…

Proposed Changes to Income-Driven Repayment Improve Student Loan Affordability, But Problems Remain

January 10, 2023

The Administration’s plan would reduce loan bills for eligible borrowers and fix several program flaws, but misses opportunities to make repayment work for low-income borrowers WASHINGTON – Today, the Department of Education proposed regulations that would significantly change income-driven repayment (“IDR”) plans for tens of millions of federal student loan borrowers. While the changes to…

Experts React to the Briefs Filed in SCOTUS Case Challenging President Biden’s Student Loan Relief Program

January 4, 2023

WASHINGTON — Tonight, at 9:00pm ET, NCLC staff attorney Abby Shafroth will join a group of experts, lawyers and advocates for a press conference by telephone to analyze the first briefs from the White House in the U.S. Supreme Court cases challenging President Biden’s student loan relief program. The first briefs from the White House…

New Process to Discharge Student Loans in Bankruptcy

January 19, 2023

This webinar will help legal aid attorneys evaluate their clients’ chances of obtaining an undue hardship discharge and discuss how the new process will work. It is intended for staff at legal services and pro bono programs.

Watch Recording Read More about New Process to Discharge Student Loans in Bankruptcy

New Process to Discharge Student Loans in Bankruptcy

February 15, 2024

Published 12/12/2022; Updated 2/15/24 A new Guidance from the Department of Justice (Department), issued in coordination with the Department of Education (Education), has the potential to change bankruptcy practice dramatically. Until now, attorneys have not thought of bankruptcy as a way to help clients struggling with student loan debt. If the Guidance is implemented as…

Letter to Congress Urging Repeal of Tax on Pell Grants

November 28, 2022

Group letter to Congress supporting litigation related to student loans and financial aid.

Federal Student Loan Payment Pause Extension a Critical Step to Protect Borrowers Pending Resolution of the Lawsuits Against Cancellation

November 22, 2022

WASHINGTON, D.C. – In response to the Biden Administration’s extension of the pause on federal student loan payments pending resolution of the lawsuits against cancellation, Alpha Taylor, staff attorney at the National Consumer Law Center, issued the following statement: “We applaud the Biden Administration for taking this critical step to protect student borrowers as it…

Advocates Cautiously Optimistic About Administration’s Plan to Improve Student Loan Bankruptcy

November 17, 2022

Concerns Remain about Consistent and Fair Implementation WASHINGTON — Today, the U.S. Departments of Education and Justice announced new guidance for when the government should allow a student loan borrower who has filed bankruptcy to be relieved of a federal student loan debt. These guidelines aim to enhance consistency and ensure greater equity in the…

Comments to the U.S. Department of Education on Evaluating Undue Hardship Claims in Adversary Actions Seeking Student Loan Discharge in Bankruptcy Proceedings

May 18, 2018

The National Consumer Law Center, on behalf of its low-income clients, submitted the following comments in response to the Department of Education’s request for information on evaluating undue hardship claims in bankruptcy. We thank the Department for this opportunity, and we are hopeful that the Department will develop helpful guidance on the appropriate factors to…

Pounding Student Loan Borrowers: The Heavy Cost of the Government's Partnership with Debt Collection Agencies

September 17, 2014

The U.S. Department of Education refers every eligible defaulted debt to one of 22 private collection agencies. Despite the history of consumer abuses by the collection industry, the United States government hires collectors not only to collect money, but also to communicate with borrowers about options to address student loan debt and to help borrowers…

New U.S. Department of Education Regulations Will Make It Easier For Borrowers Harmed By Their School To Obtain Relief

October 31, 2022

WASHINGTON – Today the U.S. Department of Education announced its final rules on the borrower defense to repayment, closed school, false certification, total and permanent disability, and Public Service Loan Forgiveness discharges, as well as arbitration and interest capitalization. The new rules will: Expand the eligibility criteria for discharges so that more borrowers are able…

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Op-Ed in The Hill: Ending the black hole that’s devouring student loan payments

Brief in Biden v. Nebraska & Brown v. U.S. Department of Education

Proposed Changes to Income-Driven Repayment Improve Student Loan Affordability, But Problems Remain

Experts React to the Briefs Filed in SCOTUS Case Challenging President Biden’s Student Loan Relief Program

New Process to Discharge Student Loans in Bankruptcy

New Process to Discharge Student Loans in Bankruptcy

Letter to Congress Urging Repeal of Tax on Pell Grants

Federal Student Loan Payment Pause Extension a Critical Step to Protect Borrowers Pending Resolution of the Lawsuits Against Cancellation

Advocates Cautiously Optimistic About Administration’s Plan to Improve Student Loan Bankruptcy

Comments to the U.S. Department of Education on Evaluating Undue Hardship Claims in Adversary Actions Seeking Student Loan Discharge in Bankruptcy Proceedings

Pounding Student Loan Borrowers: The Heavy Cost of the Government's Partnership with Debt Collection Agencies

New U.S. Department of Education Regulations Will Make It Easier For Borrowers Harmed By Their School To Obtain Relief

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