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Published: May 2011

Congress should pass law helping ease pain of private student loans

Coalition: Student loan reform

Consumer organizations sent a letter to Senator Dick Durbin, asking for his support of legislation giving private student loans borrowers access to key financial remedies and relief.

Below is the full text of the letter:

On behalf of the undersigned organizations, we are writing to express our strong support for the Fairness for Struggling Students Act of 2011.

Private student loans are one of the riskiest, most expensive ways to pay for college. Like credit cards, they typically have variable interest rates that are higher for those who can least afford them. However, private student loans are treated much more harshly in bankruptcy than credit cards and other comparable types of debt.
Private student loan borrowers also lack access to the important deferment, income-based repayment, or loan forgiveness options that come with federal student loans. This leaves most private loan borrowers at the mercy of the lender if they face financial distress due to unemployment, disability, illness or military deployment, or when a school shuts down before they can finish their certificate or degree.

With recent reports that student loan debt has outpaced credit card debt, the Fairness for Struggling Students Act of 2011 is needed now more than ever. It is inappropriate and unfair to distressed borrowers to treat private student loans more harshly than comparable types of debt. Your bill would indeed restore fairness for struggling Americans who pursued the American dream by going to college, only to find themselves in financial distress. Our broad coalition of groups representing students, consumers, higher education institutions, faculty and staff, as well as civil rights and public policy organizations thanks you for your leadership on this important issue.

Lead Organization

The Institute For College Access and Success

Other Organizations

American Association of Collegiate Registrars and Admissions Officers | American Association of Community Colleges | American Association of State Colleges and Universities | American Association of University Women | American Council on Education | American Federation of Teachers | Americans for Financial Reform | Association of Public and Land-grant Universities | Campus Progress Action | Consumer Federation of America | Consumer Federation of California | Consumer Watchdog | Consumers Union | Dēmos: A Network for Ideas & Action | The Education Trust Empire Justice Center | The Greenlining Institute | The Institute for College Access & Success and its Project on Student Debt | National Association for College Admission Counseling | National Association for Equal Opportunity in Higher Education | National Association of Consumer Advocates | National Association of Consumer Bankruptcy Attorneys | National Association of Student Financial Aid Administrators | National Center for Public Policy and Higher Education | National Community Reinvestment Coalition | National Consumer Law Center (on behalf of its low income clients) | National Consumers League | National Council of La Raza | National Education Association | Public Citizen | UNCF | U.S. PIRG | United States Student Association | Young Invincibles

More Information

Read the letter on TICA's website

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