Press Release
CSS Applauds President’s Student Debt Relief Plan
Urges Congress to Pass Legislation Funding Education Debt Consumer Assistance Programs
The Community Service Society applauds President Biden’s three-part plan to help relieve the crushing burden of student loan debt. While this is an important step for borrowers, they will still need help navigating and understanding the options available to them.
To assist consumers, Congress should now pass H.R. 8643 The Student Loan Literacy Act of 2022, which would fund nonprofit consumer assistance programs nationwide to help consumers realize savings on their student loans and make informed decisions about managing their student debt. H.R.8643 would allocate $80 million in grant funding to states to pass down to nonprofit, community-based organizations and other direct service providers who engage with borrowers directly.
The legislation would:
● Help student loan debt borrowers navigate the federal student loan system and develop strategies that lead to future financial security.
● Provide dedicated federal funding to support community-based consumer assistance programs to help struggling borrowers, increase student loan servicer oversight, and inform policy decision-making at both the state and federal level.
● Provide much-needed, unbiased one-on-one consumer assistance to borrowers: educating them on their repayment options; developing individualized long-term strategies based on their debt size and earnings potential; helping them apply for loan forgiveness, cancelation and discharge programs; and other services.
With more than 45 million Americans owing $1.7 trillion in student debt, it makes economic sense to fund programs that can help borrowers reduce or eliminate their debt, and put themselves on a path to financial health. We urge Congress to act on this legislation