This week, Congress is ramping up its debate about what protections it should extend as student loan borrowers continue to weather the Coronavirus crisis. These protections cannot come soon enough; on August 1, borrowers will begin to receive notices that the relief provided by the ‘‘Coronavirus Aid, Relief, and Economic Security Act’’ or the ‘‘CARES […]

Today on this Tax Day, the National Consumer Law Center (NCLC) has released Voices of Despair: How Seizing the EITC Is Leaving Student Loan Borrowers Homeless and Hopeless During a Pandemic. The updated report builds on a 2018 NCLC report that compiled stories from dozens of borrowers recounting the hardship caused by the federal government’s […]

The U.S. Department of Education (Department) continues to garnish the wages of student loan borrowers despite some efforts to comply with the law. One of those borrowers is Craigory Lee A. Jenkins, whose wages continue to be garnished, depriving her of exactly the relief Congress decided she needed when it passed the Coronavirus Aid, Relief, […]

The ‘‘Coronavirus Aid, Relief, and Economic Security Act’’ or the ‘‘CARES Act’’ provided much-needed relief to some federal student loan borrowers in the face of the coronavirus crisis. The package, however, fell short in several critical consumer protection areas, including student loans. As we explained in a summary of the key student loan repayment provisions […]

UPDATE (June 4, 2020): The Department of Education has provided more information about implementation of the CARES Act.  Updates are provided in the text below. **************************** On Friday, March 27th, the U.S. House of Representatives passed and the President signed into law the ‘‘Coronavirus Aid, Relief, and Economic Security Act’’ or the ‘‘CARES Act,’’ emergency […]

Update: On March, 27th,  Congress passed and the President signed into law the “CARES Act,”  emergency legislation providing. More recent information regarding COVID-19 relief for student loan borrowers can be found at: https://www.studentloanborrowerassistance.org/what-the-cares-act-means-for-repayment-of-federal-student-loans/ *************************************** This past week has been a dizzying array of announcement after announcement related to COVID-19. The world of federal student loans […]

The COVID-19 pandemic is wreaking financial havoc on millions of student loan borrowers.  Debt cancellation is the best way to protect them now and ensure that they recover along with the economy.  Our work has taught us that low-income borrowers and borrowers of color were already struggling with unaffordable student debt and default before getting […]

As concerns continue to grow about the spread of the new coronavirus (COVID-19), policymakers must act to protect those who are most economically vulnerable and to empower them with the financial safety net needed to follow public health precautions.  One area where the federal government should act is in ensuring that the federal student loan […]

By Persis Yu and Seth Frotman Right before the holidays, Montana Legal Services Association, National Consumer Law Center, and the Student Borrower Protection Center filed an amicus brief to support Montanans demanding justice for abuses by the Pennsylvania Higher Education Assistance Agency (PHEAA, a/k/a Fedloan Servicing) — a large, student loan servicing company that deprived these […]

Defaulted student loan borrowers who qualify for the Earned Income Tax Credit (EITC) and/or the Child Tax Credit (CTC) now have a new glimmer of hope. Late last week, Representative Sylvia Garcia introduced the Stop EITC and CTC Seizures Act which would protect student loan borrowers from having their EITC and CTC seized to repay […]