Solutions to Address Student Loan Default and Collections

In April, the White House announced the Department of Education is taking steps to give a fresh start to millions of struggling borrowers who are currently in default on federal student loans, protecting them from the harsh consequences of default if payments resume in the future.

For too long, defaulted borrowers have slipped through the cracks, experienced ruined credit, and been made to suffer at the hands of the Department of Education’s punitive collection system, which seizes their wages, Social Security Benefits, and Earned Income Tax Credits in retaliation for these borrowers defaulting on their federal loans. While the relief the White House announced is critically needed for people living in or close to poverty, it is not a long-term solution to a crisis decades in the making. The Department now has an opportunity to fix the broken student loan default and collection system. 

Please join SBPC for the final two parts of this three-part virtual panel series on debt collection featuring conversations with leading scholars, practitioners, and advocates, moderated by leading journalists covering student loan issues.