State Calls On DeVos To Protect Student Loan Borrowers

SACRAMENTO – California Attorney General Xavier Becerra has joined a multistate coalition of 27 attorneys general in urging Secretary of Education Betsy DeVos to immediately implement emergency measures to protect federal student loan borrowers in the wake of the COVID-19 crisis.

As a result of the COVID-19 public health crisis, hundreds of thousands of federal student loan borrowers risk delinquency and default, ruined credit, and the garnishment of government benefits. Under the Higher Education Relief Opportunities for Students Act of 2003 (“HEROES Act”), Secretary DeVos has the authority to waive or modify statutory or regulatory provisions applicable to student financial assistance programs during a national emergency. The coalition is urging Secretary DeVos to use those powers to protect borrowers.

“In the wake of the COVID-19 public health emergency, it is essential that our national leaders step up and do everything in their power to serve and defend those who are most vulnerable — including those now unable to repay their student loans,” said Attorney General Becerra. “We are asking Secretary DeVos to do her job and use her authority to protect the millions of borrowers who are struggling to meet their obligations during this crisis. We are committed to ensuring that student loan borrowers are getting the protections that they deserve during this unprecedented time.”

In the letter, Attorney General Becerra calls on Secretary DeVos to, at a minimum, do the following:

• To the extent not covered by Secretary Devos's recent announcement regarding collection of federal loans, halt all new and continuing involuntary collection activities including wage garnishment and offset of government benefits such as Social Security benefits and tax refunds. 2019 tax refund offsets that have already been withheld should be refunded to all federal student loan borrowers for the duration of the crisis;
• For all federal student loan borrowers who either (a) are currently in or request a forbearance, (b) are or become delinquent on their loans, or (c) voluntarily opt in via a request to a servicer, automatically enroll the borrowers into an Income Driven Repayment (IDR) Plan with a $0-per-month payment, without requiring submission of an IDR application, verification of income, or recertification, for the duration of the crisis; and
• Extend eligibility for all previously announced relief under the HEROES Act to all federal loan borrowers for the duration of the crisis.

In submitting the letter Attorney General Becerra was joined by the attorneys general of New York, Pennsylvania, Colorado, Connecticut, Delaware, Hawaii, Illinois, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Vermont, Virginia, Washington, Wisconsin, the District of Columbia, American Samoa, and Puerto Rico.

A copy of the letter can be viewed at : https://oag.ca.gov/system/files/attachments/press-docs/2020-03-26%20Department%20of%20Education%20AG%20letter%20for%20submission%20%281%29.pdf