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Press Press Releases SBPC Publishes Collection of Expert Policy Papers and Holds Panel Series on Fixing the Broken Student Loan System: Beyond Fresh Start

SBPC Publishes Collection of Expert Policy Papers and Holds Panel Series on Fixing the Broken Student Loan System: Beyond Fresh Start

Series Features Rep. Ayanna Pressley, Under Secretary of Education James Kvaal, and Leading Experts Highlighting Key Flaws and Fixes to our Broken Student Loan Default System

August 2, 2022 | WASHINGTON, D.C. —Today, the Student Borrower Protection Center (SBPC) released Beyond Fresh Start: Addressing the Flaws of the Current Student Loan Collection System, a new paper series from top academics, legal scholars, and advocates that outlines the flaws of our current system of student loan default and collections. This paper series features proposals for federal and state policymakers to end punitive student loan collection practices and ensure meaningful pathways for borrowers to get out of debt. 

A copy of the paper series, Beyond Fresh Start: Addressing the Flaws of the Current Student Loan Collection System, is available here: https://protectborrowers.org/beyond-fresh-start-addressing-the-flaws-of-the-current-student-loan-collection-system

In addition, the SBPC also kicked off a three-part virtual panel series today on debt collection featuring three conversations with leading scholars, practitioners, and advocates, moderated by key journalists covering student loan issues. These panels will also feature remarks by Congresswoman Ayanna Pressley and U.S. Department of Education Under Secretary James Kvaal. 

More information about the panel series is available here: protectborrowers.org/events/panel-series-beyond-fresh-start/

“For far too long, defaulted borrowers have slipped through the cracks, experienced ruined credit, and been subject to draconian and retaliatory tactics by the Department of Education and its contractors, which routinely takes away their wages and earnings, Social Security Benefits, and tax credits like the Earned Income Tax Credit, throwing many borrowers into poverty,” said Persis Yu, Policy Director & Managing Counsel at the Student Borrower Protection Center. “The Department now has an opportunity to fix the broken student loan default and collection system, and the Beyond Fresh Start series offers a pathway toward a more humane and fair system for borrowers.”

In April 2022, the U.S. Department of Education announced that it is taking steps to give a “Fresh Start” to the millions of struggling borrowers who are currently in default on their federal student loans by automatically placing their loans back in good standing. While this relief is critically needed for people living in or close to poverty, many aspects of our harsh and counterproductive system of debt collection will remain. 

Proposals to Address Debt Collection, Default, and Repayment

The Beyond Fresh Start paper series covers a range of topics related to the flaws of the current debt collection system, solutions for federal policymakers, and the role of states in addressing student loan debt and default. Taken together, these papers offer a roadmap toward fixing a crisis decades in the making.

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About Student Borrower Protection Center

The Student Borrower Protection Center (SBPC) is a nonprofit organization focused on alleviating the burden of student debt for millions of Americans. The SBPC engages in advocacy, policymaking, and litigation strategy to rein in industry abuses, protect borrowers’ rights, and advance economic opportunity for the next generation of students.

Learn more at protectborrowers.org or follow SBPC on Twitter @theSBPC.

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