July 24, 2023<\/p>\n
Media contact: National Consumers League \u2013 Katie Brown, katie@nclnet.org, 202-823-8442<\/p>\n
Washington, D.C. \u2013 Last week, the National Consumers League (NCL) filed comments in a U.S. Department of Education (ED) regulatory process that will enable\u00a0the Department to broadly cancel student debt. This newest debt cancellation initiative came after <\/span>NCL urged the administration<\/span><\/a> to utilize alternate authorities following the Supreme Court\u2019s misguided judgement against the first debt cancellation program.<\/span>\u00a0<\/span><\/p>\n \u201cPresident Biden and Secretary Cardona correctly recognized that we need to address the debt burden associated with getting an education,\u201d said NCL Public Policy Manager Eden Iscil. \u201cThey have an opportunity to substantially improve the lives of millions of borrowers through a number of options available with this process the Department initiated.\u201d<\/span>\u00a0<\/span><\/p>\n In its comments to ED, NCL advocated for universal student debt cancellation without unnecessary administrative burdens on borrowers. Such burdens likely prevented millions of eligible borrowers from applying to the first cancellation program and significantly delayed its implementation. In addition to one-time debt cancellation, this process will empower\u00a0ED to improve its permanent cancellation pathways under its <\/span>income-driven repayment (IDR) plans<\/span><\/a> to allow debt relief to be accessible in the future as well.<\/span>\u00a0<\/span><\/p>\n Currently, IDR plans use all-or-nothing debt cancellation, with student debts erased only after several years in repayment (usually 20-25 years). Such a system relies on student loan servicers, ED, or borrowers not making a single mistake in filing paperwork for decades\u2014something almost 6 out of 10 borrowers do. Under NCL\u2019s proposal, borrowers would receive incremental forgiveness. For example, a borrower who is currently eligible for 100% debt cancellation after 10 years of repayment would instead see 10% of their principal balance erased each year for a decade.<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n NCL\u2019s full comments to the Department can be found here.<\/a>\u00a0<\/span>\u00a0<\/span><\/p>\n ###<\/p>\n About the National Consumers League (NCL)<\/strong> Last week, the National Consumers League (NCL) filed comments in a U.S. Department of Education (ED) regulatory process that will enable\u00a0the Department to broadly cancel student debt. This newest debt cancellation initiative came after NCL urged the administration to utilize alternate authorities following the Supreme Court\u2019s misguided judgement against the first debt cancellation program.\u00a0<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false},"categories":[14,315],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/posts\/25728"}],"collection":[{"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/comments?post=25728"}],"version-history":[{"count":4,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/posts\/25728\/revisions"}],"predecessor-version":[{"id":25813,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/posts\/25728\/revisions\/25813"}],"wp:attachment":[{"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/media?parent=25728"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/categories?post=25728"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nclnet.org\/wp-json\/wp\/v2\/tags?post=25728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nThe National Consumers League, founded in 1899, is America\u2019s pioneer consumer organization.\u00a0 Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad.\u00a0 For more information, visit nclnet.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"