the Fairness for Struggling Students Act of 2013

[limpyhobbler]

I just noticed the Fairness for Struggling Students Act of 2013 gained two new sponsors in June!

COSPONSORS(10), BY DATE
Sen Whitehouse, Sheldon [RI] - 1/23/2013
Sen Franken, Al [MN] - 1/23/2013
Sen Harkin, Tom [IA] - 1/23/2013
Sen Reed, Jack [RI] - 1/23/2013
Sen Warren, Elizabeth [MA] - 1/23/2013
Sen Boxer, Barbara [CA] - 1/28/2013
Sen Rockefeller, John D., IV [WV] - 2/4/2013
Sen Sanders, Bernard [VT] - 3/22/2013
Sen Baldwin, Tammy [WI] - 6/7/2013
Sen Murphy, Christopher S. [CT] - 6/24/2013

http://thomas.loc.gov/cgi-bin/bdquery/z?d113:SN00114:

Thanks to Senators Baldwin and Murphy for signing on in June!

This is a really important bill. It would restore protections for debtors with private bank student loans. The protections were stripped away by Bush and Congress in 2005. These are just loans from banks, not guaranteed by the government at all. And yet the banks have created a special loophole to make sure debtors have no access to normal consumer financial protection.


From Senator Durbin:

[WASHINGTON, D.C.] – U.S. Senator Dick Durbin (D-IL) joined Chairman of the Senate Health, Education, Labor and Pensions Committee U.S. Senator Tom Harkin (D-IA) and U.S. Senator Al Franken (D-MN) in reintroducing two pieces of legislation – the Fairness for Struggling Students Act of 2013 and the Know Before You Owe Act of 2013 – to restore transparency, fairness and common sense to the student loan process.

According to the Consumer Financial Protection Bureau, the student loan debt among college students surpassed $1 trillion last year. This reflects an average debt load of $24,301 for each of the 37 million student borrowers in the United States, according to the New York Federal Reserve Bank. The CFPB reports that approximately $150 billion of outstanding student loan debt is in private loans.

“The first two pieces of legislation I will introduce this Congress deal with what I think is one of the biggest threats to millions of working families – the growing student loan debt crisis,” said Durbin. “Too many Americans are carrying around mortgage-sized student loan debt that forces them to put off major life decisions like buying a home or starting a family. It’s not only young people facing this crisis, it is parents, siblings and even grandparents who co-signed private loans long ago and are still making payments decades later. It’s time for action. We can no longer sit by while this student debt bomb keeps ticking.”

“Unless we take action to educate and protect borrowers, student loan debt will be the next mortgage crisis. Young Americans are being hamstrung by record debt levels, forcing them to delay other important investments in their futures, including purchasing homes and saving for a secure retirement. By empowering students with clear guidance about their federal financial aid options before they turn to more expensive private loans and restoring the option to discharge private loan debt through bankruptcy, the Know Before You Owe Act and the Fairness for Struggling Students Act will go a long way to help students make smart choices and provide relief to borrowers. Students need to know how to avoid the higher interest rates and less favorable terms of private loans, so they can be on more stable financial footing when they graduate,” Harkin said.

http://www.durbin.senate.gov/public/index.cfm/pressreleases?ID=adad47a3-9b82-4c46-b971-57bb9dc11044

Let's expand the realm of what's possible. If you are the type of person who is inclined to call Congress, you know what to do. Tell your Senators and Reps to add their names to this list of sponsors, or thank them if they already have. Thank you so much.

And Happy Independence Day

[limpyhobbler]

1. Also...

The American Association of University Women is on record supporting the bill. In 2012, the Consumer Financial Protection Bureau, the U.S. Department of Education, FinAid.org publisher Mark Kantrowitz, and The Institute For College Access and Success all called on Congress to make it easier for debtors to find relief of their private student loans in bankruptcy. Even Sallie Mae, one of the country's major private student loan players, said they're open to reforming the bankruptcy law.

Martha Holler, a Sallie Mae spokeswoman, confirmed to the Wall Street Journal on Wednesday they still support "reform that would allow federal and private student loans to be dischargeable in bankruptcy for those who have made a good faith effort to repay their student loans over a five- to seven-year period and still experience financial difficulty."

http://www.huffingtonpost.com/2013/01/23/fairness-for-struggling-students-act_n_2538832.html

[limpyhobbler]

2. In the House, this provision is called the Private Student Loan Bankruptcy Fairness Act of 2013 !!!

And is sponsored by Rep Steve Cohen. It has 33 co-sponsors!!

COSPONSORS(33), BY DATE [order is left to right]: (Sort: alphabetical order)
Rep Davis, Danny K. [IL-7] - 2/6/2013
Rep Miller, George [CA-11] - 2/6/2013
Rep Conyers, John, Jr. [MI-13] - 2/6/2013
Rep Lofgren, Zoe [CA-19] - 2/6/2013
Rep Bordallo, Madeleine Z. [GU] - 2/6/2013
Rep Chu, Judy [CA-27] - 2/6/2013
Rep Ellison, Keith [MN-5] - 2/6/2013
Rep Holt, Rush [NJ-12] - 2/6/2013
Rep Johnson, Henry C. "Hank," Jr. [GA-4] - 2/6/2013
Rep Rangel, Charles B. [NY-13] - 2/6/2013
Rep Waxman, Henry A. [CA-33] - 2/6/2013
Rep Lee, Barbara [CA-13] - 2/6/2013
Rep Courtney, Joe [CT-2] - 2/6/2013
Rep Pingree, Chellie [ME-1] - 2/6/2013
Rep Quigley, Mike [IL-5] - 2/28/2013
Rep McNerney, Jerry [CA-9] - 2/28/2013
Rep Velazquez, Nydia M. [NY-7] - 2/28/2013
Rep Moran, James P. [VA-8] - 3/12/2013
Rep Honda, Michael M. [CA-17] - 3/12/2013
Rep McGovern, James P. [MA-2] - 3/12/2013
Rep Watt, Melvin L. [NC-12] - 3/12/2013
Rep Eshoo, Anna G. [CA-18] - 3/12/2013
Rep Castor, Kathy [FL-14] - 3/20/2013
Rep Moore, Gwen [WI-4] - 3/20/2013
Rep Tierney, John F. [MA-6] - 4/9/2013
Rep Ryan, Tim [OH-13] - 4/9/2013
Rep Brownley, Julia [CA-26] - 4/18/2013
Rep Swalwell, Eric [CA-15] - 5/9/2013
Rep Schakowsky, Janice D. [IL-9] - 5/9/2013
Rep Butterfield, G. K. [NC-1] - 6/20/2013
Rep Titus, Dina [NV-1] - 6/20/2013
Rep Peters, Scott H. [CA-52] - 6/20/2013
Rep Edwards, Donna F. [MD-4] - 6/20/2013

http://thomas.loc.gov/cgi-bin/bdquery/z?d113:HR00532: