Attorney General Phil Weiser led a 23-state coalition urging US Secretary of Education Miguel Cardona to pass additional reforms that would make the student loan payment process easier and prevent student borrowers from having to repay debts to for-profit and missing colleges who deceived them.
“Student loan debt is a heavy burden that many Coloradans bear,” Weiser said in a press release from his office. “By implementing sound student loan reforms, the Department of Education can help ease this burden and enable student borrowers, including those affected by the COVID-19 pandemic, to avoid the potentially serious consequences of the ‘inability to repay these loans. ”
In the coalition’s letter to Cardona, the attorneys general urged the secretary and the education ministry to consider several policy measures that could help student borrowers, including:
- Continue the policy of suspending student loan payments and waiving interest for as long as necessary to support distressed borrowers;
- Pursue the policy of suspending involuntary collection activities and allow suspended payments to count towards both the utility loan remission and the income-tested repayment scheme remission
- Enact reforms so that student loan borrowers can access and stay within the income-based repayment plans to which they are entitled, allowing borrowers to have more affordable monthly payments, avoiding the severe consequences of defaulting. payment and have their loan canceled, if applicable;
- Enforcement of the higher education law’s paid employment requirement, which would protect borrowers from for-profit programs that do not prepare students for a career.
The letter also applauded the steps taken on March 30 by the ministry to extend protections against the pandemic to private loans.
The letter was issued by Weiser and Pennsylvania Attorney General Josh Shapiro, who were joined by Attorneys General of Connecticut, District of Columbia, Delaware, Hawaii, Iowa, Illinois, Massachusetts, Maryland, Maine, North Carolina, New Jersey, New York. , Nevada, Oregon, Virginia, Vermont, Washington and Wisconsin.
Learn more about the work of the Colorado Attorney General’s Office to regulate student loan managers, and find tips on how to avoid student loan scams, at OakPark Financial