WASHINGTON, D.C. — There’s a push to help federal student loan borrowers repair their credit scores if they have fallen behind on payments.
A group of House Democrats reintroduced three bills: the Clean Slate through Rehabilitation Act, the Clean Slate Repayment Act and the Clean Slate Through Consolidation Act.
The measures would remove negative credit reporting from a borrower’s credit history if they have taken steps to get back on track with repayment.
“The three bills in the clean slate legislative series will help borrowers truly get a second chance after doing the hard work to get their finances in order from crippling student loan debt, and I know exactly how hard this can be because I’ve been there after falling behind on my own student loan payments,” said Rep. Nikema Williams (D-GA), a co-sponsor of the measures.
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It comes after the U.S. Supreme Court struck down President Biden’s student loan debt forgiveness plan last month.
“I’ve said it before and I’ll say it again, the debt is just too damn high,” said Rep. Alma Adams (D-NC), another co-sponsor of the proposals. “The Supreme Court is helping to turn college and universities into another barrier that keeps families out of the middle class.”
Republicans in Congress blasted President Biden’s student loan debt forgiveness plan from the start.
“Senate Republicans will continue to stand against radical student loan socialism – in whatever form it may take,” said Sen. Minority Leader Mitch McConnell on the Senate floor on Wednesday.
Senate Republicans are pushing a proposal for more transparency with college costs and to cap borrowing for certain students.
House Republicans introduced the Federal Assistance to Initiate Repayment (FAIR) Act, which aims to streamline the repayment process and prevent excessive interest from accruing on loans.
In a joint statement, the sponsors of the FAIR Act including Rep. Burgess Owens (R-UT), Rep. Lisa McClain (R-MI) and Rep. Virginia Foxx (R-NC) said: “The FAIR Act is a fiscally responsible, targeted response to the chaos caused by Biden’s student loan scam. This Republican solution takes important steps to fix the broken student loan system, provide borrowers with clear guidance on repayment, and protect taxpayers from the economic fallout caused by the administration’s radical free college agenda.”
We spoke with Melissa Byrne, the founder of the group We, The 45 Million, which is fighting to cancel student debt about the proposals announced by House Democrats on Wednesday.
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“I think it’s great that members of Congress want to take action on student loan debt, but right now the action they should be taking is fully engaging in the Higher Education Act process,” said Byrne.
The Higher Education Act is the step the Biden administration is now taking to try and provide student loan debt relief following the Supreme Court’s ruling.
The Biden administration argues the law gives the Education Secretary a broad set of tools to help borrowers in financial distress.
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“They need to be all in, and they need to be publicly demanding that we provide relief for people,” said Byrne. “The president made a promise.”
There is a lengthy process for the Higher Education Act, which involves public hearings and public comment.
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