SBPC and National Consumer Law Center Letter to Betsy DeVos Demanding Fixes to CARES Act Implementation
The Student Borrower Protection Center (SBPC) and the National Consumer Law Center (NCLC) sent a letter to Secretary of Education Betsy DeVos urging her to take swift action to mitigate borrower harm from poor implementation of the CARES Act. As part of the CARES Act, Congress passed several protections designed to alleviate financial distress for some federal student loan borrowers during the global coronavirus pandemic. However, in the last month, borrowers have reported widespread servicing breakdowns when seeking to access these protections.
The letter calls on the Secretary to use her authority to expand protections for student loan borrowers during the coronavirus pandemic, including by prohibiting interest capitalization, improving income-driven repayment plan enrollment for the most vulnerable borrowers, and removing obstacles to cure defaulted student loans.
The letter is part of a broader effort by the SBPC and NCLC to combat predatory practices and hold policymakers and the federal government accountable for providing critical relief during this economic crisis.NCLC-SBPC-Letter-to-ED-1