Cross-posted from the Center for Responsible Lending Joint Statement: Narrowing Student Debt Cancellation in Heroes Act Leaves Out Millions We, the 9 undersigned organizations, write to share our concerns about proposed changes to the student debt relief provisions in the Heroes Act. The original Heroes
Policy Recommendations: Critical Post-CARES Act Financial Policy Steps to Respond to the Coronavirus
Americans for Financial Reform released a set of financial policy recommendations for Congress to fix the problems and loopholes in the CARES Act, to further protect and support individuals, families and communities in the face of this crisis, and to lay the groundwork for an equitable and sustainable economic recovery.
Today, 69 community, civil rights, consumer, and student advocacy organizations sent a letter to House and Senate leadership, urging them to include student debt cancellation in the next coronavirus package. The letter also calls on leadership to extend the suspension of payments on federal student loans through March 2021, as current estimates indicate that the economy will not recover to pre-virus levels until the third quarter of 2021.
The 43 million federal student loan borrowers are not getting meaningful relief from the CARES Act. It leaves an estimated 9 millions of federal student loan borrowers without any relief at all, does not guarantee that borrowers won’t face large principals when they return to repayment, and doesn’t include cancelling student debt, a move that both provides crucial relief to distressed borrowers and stimulates a fast-contracting economy.
FOR IMMEDIATE RELEASE March 25, 2020 CONTACT: Alexis Goldstein, firstname.lastname@example.org Halt to Student Loan Collections Must Go Back Further, Include All Borrowers Statement from Alexis Goldstein, Senior Policy Analyst, Americans for Financial Reform: Education Secretary DeVos’s announcement that some forced collections will be halted is
Joint Letter: 63 Organizations Call for Credit and Debt Protections to Address Financial Distress From COVID-19
Americans for Financial Reform and 62 other organizations sent a letter to members of Congress asking them to implement broad-based, efficient, and effective relief for millions of people and small businesses in the U.S.
In the News: Trump suspends interest on all federal student loans to ease financial impact of coronavirus
“With so many facing the prospect of lost wages or lost jobs, the government can and should do more than waive interest, which is merely an economic Band-Aid on the gaping financial wound the pandemic is causing,” said Alexis Goldstein, senior policy analyst at the liberal think tank Americans for Financial Reform. “The Education Department has the authority to cancel student debt, and using it would mean both short- and medium-term economic stimulus that helps all Americans.”
AFR Statement: The Department of Education has the Authority to Cancel Federal Student Loans. It should.
Today’s proposal that administrative authority be used to cancel student debt, and the affirmation of the legality of such a step by the Project on Predatory Student Lending at Harvard Law School are important positive possibilities for student borrowers and their families and communities. AFR has long called on the Department of Education to use its existing legal authority to cancel the federal debts of wronged students of for-profit colleges without individual application – as have former Corinthian students, advocates, lawmakers, and law enforcement officials.
Strong majorities across political parties show concern about the level of student debt in the United States and oppose the Department of Education’s and the Consumer Financial Protection Bureau’s (CFPB) recent actions to weaken protections for students, according to a new poll released by Americans for Financial Reform (AFR) and the Center for Responsible Lending (CRL).
Letter to Regulators: Joint Letter to CFPB on Debt Collection NPRM’s failure to protect student loan borrowers from abusive practices
AFR Ed Fund and thirty-three other organizations submitted the following comments in response to the Consumer Financial Protection Bureau (CFPB)’s notice of proposed rulemaking (NPRM) on Debt Collection Practices (Regulation F).