Chicago – Attorney General Kwame Raoul has joined a coalition of 18 attorneys general urging the U.S. Department of Education to swiftly implement its recently proposed regulations aimed at providing relief for federal student loan borrowers.
In their comment letter, Raoul and the coalition advocate for regulations that would waive or reduce repayments for specific groups of federal student loan borrowers.
“I urge the Department of Education to implement the proposed regulations as expediently as possible to ensure affected borrowers see much-needed student loan relief,” Raoul stated. “I will continue to advocate on behalf of borrowers and hold predatory lenders accountable.”
The coalition highlights the need for meaningful debt relief to address the nationwide student debt crisis, which disproportionately affects low-income borrowers and borrowers of color. They emphasize that historical and ongoing systemic failures in the federal student loan system have exacerbated this crisis. Drawing from their experiences, they commend the department for proposing regulations designed to alleviate burdens for struggling borrowers.
The proposed regulations aim to provide critical debt relief to:
- Borrowers whose balances have increased due to accrued and capitalized interest, particularly those with older loans who have been impacted by misconduct from loan servicers and previous policy choices.
- Borrowers with commercially held loans under the Federal Family Education Loan (FFEL) Program. The proposal includes a system allowing some FFEL holders, who stopped receiving new loans in 2010 but remain burdened by debt, access to debt relief. These borrowers are encouraged to consolidate their loans by June 30th to benefit from income-driven repayment plans and forgiveness programs.
- Borrowers who attended schools that failed their obligations or lost Title IV eligibility due to poor student outcomes. These individuals did not receive the promised education value and should not bear responsibility for institutional failures.
- Borrowers eligible for other federal relief programs like income-driven repayment plans or Public Service Loan Forgiveness but faced difficulties enrolling due to complex systems.
Joining Raoul in submitting the comment letter are attorneys general from California, Colorado, Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont and Washington.