With new rules for student loans scheduled to go into effect this summer that could radically increase borrowers’ monthly payments, the Department of Education must take steps to protect borrowers from devastating consequences.
Legal assistance groups that provide free legal assistance to low-income people submitted these group comments in response to the Department of Education’s proposal to implement changes made by the One Big Beautiful Bill Act (“OBBB”) to rules governing federal student loan repayment, deferrals related to economic hardship and unemployment, and rehabilitation of student loans out…
Court Rejects Department of Education’s Request to Approve Proposed Settlement That Would End SAVE Plan and Dismisses Case
NCLC filed comments with Treasury in response to proposed amendments to federal debt collection regulations. Comments raised concerns about the need for additional protections to ensure actual notice when creditor agencies provide notices electronically and concerns about overly loose matching criteria, potentially leading to Treasury offsets affecting the incorrect consumer. They also explained the need…
Read More about Comments to the Treasury about Proposed Federal Debt Collection Regulations
Appearing in CNBC on Jan. 14, 2026, Annie Nova talks to NCLC Senior Attorney Kyra Taylor about how the Trump administration is predicting larger tax refunds for the 2026 season due to changes in the “big beautiful bill,” but the millions of student loan borrowers who are behind on their payments may miss out. If…
Appearing in The New York Times on Jan. 16, 2026, Tara Siegel Bernard talks to Abby Shafroth, managing director of advocacy at the National Consumer Law Center, about the Education Department temporarily pausing a plan to seize tax refunds and begin garnishing the wages of borrowers who have defaulted on their student loans. “Today’s announcement…
Originally appearing in the Detroit Free Press on Jan. 22, 2026, Susan Tompor talks to Abby Shafroth, managing director of advocacy at the National Consumer Law Center about how millions of student loan borrowers in default risked seeing their wages garnished and tax refunds seized. Student loan borrowers are “buckling under the weight of outdated…
Read More about USA Today: Student loan borrowers in default now able to keep tax refunds
The Department of Education announced that it will delay plans to seize tax refunds and garnish the wages of struggling student loan borrowers.
AFT Amends Complaint in Lawsuit Against Embattled Student Loan Servicer, Alleges MOHELA’s Misconduct Has Been Ongoing for Years
Read More about MOHELA Hit With Fresh Charges of Ongoing Student Loan Mismanagement
Borrowers Advised to “Dial Before You File” to Know if Your Loans are in Default and Your Refund Is at Risk.
Read More about Advocates Warn Student Loan Borrowers: The Government May Seize Your Tax Refund
Proposed Settlement Terminates Hopes of Loan Forgiveness for Millions and Will Lead to Higher Bills for 7M+ Borrowers WASHINGTON – Today, the U.S. Department of Education announced a proposed settlement that would end the Saving on a Valuable Education (SAVE) Plan, which offered millions of federal student loan borrowers lower monthly payments and a pathway…
Rule Imperils Civil Legal Aid and Low-Income People with Legal Needs Related to Healthcare, Housing, and Other Essential Services
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