Ayanna Pressley Proposes a Pathway to Credit Relief for Private Student Loan Borrowers
Congresswoman Ayanna Pressley (D-MA) introduced legislation this week to provide much-needed support to private student loan borrowers. Student loan debt in the United States today exceeds credit card debt, auto loan debt, and is the second-highest form of consumer debt, behind mortgage debt. In 2018, nearly $120 billion of outstanding student loan debt was a result of private student loans. Pressley said the Student Borrower Credit Improvement Act would provide a pathway to financial stability by helping students improve their credit. The bill would offer key reforms to help borrowers struggling to repair their credit, including the establishment of a credit rehabilitation process for borrowers. It would establish processes that mirror the protections granted to delinquent or defaulted federal student loan borrowers. It provides flexibility for borrowers who may be experiencing significant financial distress, servicemembers who’ve been deployed, and those who live in an area impacted by a natural disaster and may not be able to work. “My bill will help us get one step closer to establishing parity among borrowers and a credit reporting system that works for people when they need it most,” said Pressley. More here.