Student Loan Relief Act of 2015 Is a Wolf In Sheep’s Clothing
[WASHINGTON]–Last week, U.S. Senators Kelly Ayotte (R-NH) and Shelly Moore Capito (R-WV) introduced S. 2099, the Student Loan Relief Act of 2015, which would establish a mechanism for refinancing Federal student loans with non-public lenders.
Jennifer Wang, policy director of Young Invincibles, released the following statement in reaction to the legislation’s introduction:
“The Student Loan Relief Act of 2015 is a wolf in sheep’s clothing — offering borrowers the chance to refinance at the expense of their consumer protections. Yes, borrowers should be able to refinance their loans just like mortgage or auto loan holders, but they shouldn’t have to give up their federal protections, like the right to repay their loans as a proportion of their income, or ability to put their loans into deferment or forbearance during tough economic times, in order to refinance.”
“Borrowers are also not the only ones threatened by this legislation. By steering borrowers into the private loan market via federally guaranteed loans, this bill privatizes profits made on the backs of students and families while placing the risk squarely on the taxpayer. A smarter approach would be to allow federal borrowers to bring their interest rates down while simultaneously preserving consumer protections.“
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FOR IMMEDIATE RELEASE
Contacts: Colin Seeberger, [email protected], 214.223.2913; Sarah Schultz, [email protected], 202.654.6501
