Published: August 2012

In support of fair and affordable federal loan repayment options

The economic downturn has left many student loan borrowers – at all stages of life – struggling to manage their bills and start and/or support a family. Half of recent college graduates are either unemployed or underemployed—the highest share in more than a decade.

Consumer Action and other advocates wrote Education Secretary Duncan in support of the July 17, 2012 "Notice of Proposed Rulemaking" that aims to help federal borrowers repay their loans. To ensure access to fair and affordable federal loan repayment options, the coalition also recommends several improvements that will strengthen the proposed legislation:

1. Reduce the extreme and disproportionate penalty for late paperwork
2. Count qualifying payments made before and after consolidation towards forgiveness
3. Ensure borrowers can exit IBR to enter a different repayment plan without prohibitive penalty
4. Accept social security administration (SSA) disability determinations for loan discharges

Lead Organization

The Institute for College Access and Success (TICAS)

Other Organizations

American Association of State Colleges and Universities | American Association of University Women | American Federation of Teachers | Americans for Financial Reform | American Medical Student Association | Campus Progress Action | Consumer Action | Consumers Union | The Education Trust | Hispanic Association of Colleges and Universities | The Institute for College Access & Success and its Project on Student Debt | The Leadership Conference on Civil and Human Rights | National Council of La Raza | National Direct Student Loan Coalition | National Education Association | U.S. PIRG

More Information

The Project on Student Debt

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In support of fair and affordable federal loan repayment options   (Coalition_letter_on_NPRM_8-16-12.pdf)