Student Loan Debt: Congressional Review Act Resolution Could Overturn Recent Rollbacks by Department of Education
Although the student loan debt crisis is a topic of interest to most US citizens today, mainly because most of us have either had to pay one off, are still in the process of paying one down, or we have a family member or close friend who has been significantly stressed with the financial burden of trying to pay off educational expenses too. On average, borrowers in the 20- to 30-year-old range are paying back nearly $400 a month to student loan servicers. This could pose quite a struggle for many who are new to being on their own and handling a budget, especially.
Student loans are a focus in political debates, and politicians continue to make promises to win the vote; inevitably, there are vows to offer more flexibility to those suffering financial distress, or in some cases forgive student loan debt altogether. While many encouraging protections were previously offered to borrowers financially ‘harmed’ by schools guilty of fraudulent activity or overly aggressive (and false) marketing, Department of Education rollbacks will leave many out in the cold after July 1, 2020.
Now, recent news states that some Senators are hoping to overturn the DOE eliminations of protection and relief previously offered in the borrower defense rule, and may be forcing a vote soon. Senator Dick Durbin of Illinois is sponsoring the Congressional Review Act resolution:
“We will have an opportunity here to debate and vote on a system that was put in place years ago to protect students from being defrauded by colleges they attend, it’s called the borrower defense program,” Durbin said on the Senate floor.
Unfortunately, other Senators are in support of the policies created by DeVos, considering it ‘fair’ and suitable for ‘protecting taxpayers.’
“Not only does a single student have a chance to claim being misled, any student in that class or in that school with a similar circumstance would also have their loan forgiven,” said Tennessee Sen. Lamar Alexander, the chairman of the Senate Education Committee. “So, we could be talking about tens of billions of dollars of loss to taxpayers.”
“The problem with wiping away debt is it’s never really gone, you just pass the responsibility on to someone else,” said Senator John Cornyn, a Republican from Texas. “We see that concept, that mentality at play here today when it comes to this rule promulgated by the Trump administration that our friends across the aisle seek to reverse.”
Have you experienced problems with your loan service provider or student loan program, or are you in danger of defaulting on your student loan? Contact Fitzgerald & Campbell, APLC now so one of our experienced student loan debt attorneys can review your case and discuss all the available options with you.
Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (855) 709-5788, or email us at firstname.lastname@example.org.
Posted in: Student Loan Debt