Future Forum Urges Relief for Student Borrowers in Default

WASHINGTON – Earlier this week, members of Future Forum, an influential group of young Democratic Members of Congress who advocate for issues and opportunities important to younger Americans, sent a letter to U.S. Secretary of Education Betsy DeVos urging immediate suspension of student loan collection activities from borrowers already in default or borrowers at risk of default because of economic disruption due to coronavirus.

"Coronavirus will exacerbate the situation that many student borrowers currently in the workforce face, because businesses are closing and workers are being laid off or having their salaries or wages reduced," the members wrote. "… Suspending the collection of federal student loan payments from our most vulnerable student borrowers would help enable these Americans to prioritize their most basic needs, such as food, health care, housing, and child care."

Of the nearly 45 million student borrowers in the United States, there are an estimated 5.7 million in default and many more on the brink of default. According to the U.S. Department of Education, the consequences of defaulting can impact an individual's access to credit and their finances. In some cases, wages may be garnished, tax refunds and federal benefit payments may be withheld, and borrowers may be sued by loan holders.

According to reports, the Administration may soon issue regulations to put a stop to collecting on defaulted federal student loans and order private collection agencies to stop pursuing borrowers until further notice.

The letter was signed by Chairwoman Stephanie Murphy (D-Fla.), Vice-Chair Abby Finkenauer (D-Iowa), Vice-Chair Jimmy Gomez (D-Calif.), Chair Emeritus Eric Swalwell (D-Calif.), Joe Cunningham (D-S.C.), Ruben Gallego (D-Ariz.), Kendra Horn (D-Okla.), Grace Meng (D-N.Y.), Seth Moulton (D-Mass.), Debbie Mucarsel-Powell (D-Fla.), Katie Porter (D-Calif.), Max Rose (D-N.Y.), Darren Soto (D-Fla.), and Elissa Slotkin (D-Minn.).

Click here to view the full text of the letter.

Since its inception, Future Forum has visited more than 50 cities in an effort to engage with millennial and Gen Z Americans where they live, work, and go to school on issues important to them such as student loan debt, college affordability, and employment opportunities.

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