In a report, the SBPC, Young Invincibles, Community Service Society of New York, and New Yorkers for Responsible Lending show how private student loan collection practices are harming borrowers across the country, including a spotlight on New York borrowers. With creditors dragging borrowers into court for debt they often do not owe and lacking the documents necessary to back up their claims, the report lays out how these companies are manipulating courts into garnishing borrowers’ wages for illegitimate debt. The analysis also shows that in New York, these lawsuits disproportionately target communities of color.
This report was released in conjunction with a joint event convened by the the organizations entitled New York’s Student Debt Crisis: How Policymakers and Advocates are Partnering to Protect Borrowers. The event brought together New York’s leading legislator’s to discuss their 2021 priorities for ending abusive and predatory practices in the student loan market, followed by advocates discussing how to continue the local fight to protect borrowers.