Marginalized Populations

Currently, most borrowers entering prison end up going into default because they are unable to make payments or even contact their servicer about available options. In fact, a recent analysis from the Student Borrower Protection Center found that nearly 100% of incarcerated student loan borrowers were in default.

“The vast majority of prison education programs are dependent on Pell funding,” said Amber Saddler, counsel at the SBPC. “If you’re in default, this new opportunity for prison education is closed to you.”

The lawsuit filed by the Student Borrower Protection Center (SBPC) comes on the heels of the nonprofit’s new report, finding that 100 percent of 57 incarcerated individuals part of a data study are currently in default—due to barriers in accessing Pell Grants, and the holdup of student debt relief that is currently being deliberated by the U.S. Supreme Court. Although the data subset is relatively minute, they believe the numbers are higher across…

Amajority of student loan borrowers who are incarcerated have likely defaulted on their loans and would benefit from President Biden’s debt-relief plan, a new report from the Student Borrower Protection Center argues.