For Immediate Release
Student Loan Justice urges Congress, President Biden, to return bankruptcy rights to student loans before the election.
October 28th, 2022
We strongly applauded Senator's Dick Durbin (IL) and John Cornyn (TX) for introducing the bipartisan Fresh Start Through Bankruptcy Act last year, and it's companion bill in the House HR 9110, last month. Returning bankruptcy protections to federal student loans is the first step that must be taken to address the national student loan crisis.
Enshrined in the Constitution, bankruptcy rights have always been a core foundation for freedom, entrepreneurship, and a vibrant economy. Removing them, uniquely, from student loans never had a rational basis, has caused massive harms to tens of millions of decent citizens of all across the socio-economic spectrum. While few should ultimately have to file for this protection when it is restored, all borrowers need this right back in place to avoid being abused, as has been the case for decades in the absence of this bedrock protection.
This legislation, however, will expire at the end of the year, and with federal student loan repayments set to resume in January 2023, this sets the borrowers up for abuse at the hands of the student loan collection companies like nothing we have ever seen in this country. To allow this legislation to expire and leave 38 million distressed borrowers at the mercy of the student loan industry without at least the same bankruptcy rights that all other borrowers enjoy would be catastrophic for these individuals, the national economy, and would be unconscionable. These 38 million distressed federal loan borrowers- who represent the largest, politically untethered voting bloc in modern US History- have been extremely patient and tolerant to this point, but time is getting short.
Contact: Alan Collinge
(202) 594-1120
Alan@studentloanjustice.org
StudentLoanJustice.Org is the first, oldest, and largest grassroots citizens group in the nation.
Student Loan Justice urges Congress, President Biden, to return bankruptcy rights to student loans before the election.
October 28th, 2022
We strongly applauded Senator's Dick Durbin (IL) and John Cornyn (TX) for introducing the bipartisan Fresh Start Through Bankruptcy Act last year, and it's companion bill in the House HR 9110, last month. Returning bankruptcy protections to federal student loans is the first step that must be taken to address the national student loan crisis.
Enshrined in the Constitution, bankruptcy rights have always been a core foundation for freedom, entrepreneurship, and a vibrant economy. Removing them, uniquely, from student loans never had a rational basis, has caused massive harms to tens of millions of decent citizens of all across the socio-economic spectrum. While few should ultimately have to file for this protection when it is restored, all borrowers need this right back in place to avoid being abused, as has been the case for decades in the absence of this bedrock protection.
This legislation, however, will expire at the end of the year, and with federal student loan repayments set to resume in January 2023, this sets the borrowers up for abuse at the hands of the student loan collection companies like nothing we have ever seen in this country. To allow this legislation to expire and leave 38 million distressed borrowers at the mercy of the student loan industry without at least the same bankruptcy rights that all other borrowers enjoy would be catastrophic for these individuals, the national economy, and would be unconscionable. These 38 million distressed federal loan borrowers- who represent the largest, politically untethered voting bloc in modern US History- have been extremely patient and tolerant to this point, but time is getting short.
- We urge Congress to pass S.2598/HR. 9110 before the November elections, so that these voters can properly assign their vote to the candidates who support this legislation
- We urge President Biden, Secretary Cardona, Undersecretary James Kvaal, and Federal Student Aid Chief Operations Officer Richard Cordray to stop opposing student loan borrowers in bankruptcy court before the election, as they have promised to do repeatedly since 2020.
- We urge our 1.2 million members- and student loan borrowers everywhere- to hold their ballots until/unless this critically important legislation is passed.
Contact: Alan Collinge
(202) 594-1120
Alan@studentloanjustice.org
StudentLoanJustice.Org is the first, oldest, and largest grassroots citizens group in the nation.