One Avenue Closes, Another Opens

TAKE ACTION Tell your senators to support Fair Payment Assurance

If you have been following our efforts in recent months, you know that the U.S. Department of Education included our Plan for Fair Loan Payments on the agenda for the “negotiated rulemaking” process that began last fall. At the first rulemaking meeting in December 2006, the Plan’s general approach was welcomed and even praised by negotiators and Department representatives alike.

In an unexpected and disappointing shift, agency officials announced to negotiators last week—and confirmed today—that our borrower protection plan and five other items would not be pursued further in this regulatory process. They indicated that the policy changes that would have been required, and the potential budget costs, were more than they were comfortable taking on in the regulatory process.

Fortunately, leaders in Congress are picking up the baton. The Fair Payment Assurance plan, recently introduced as part of Senate Bill 359, is designed to achieve the same goals as the plan we developed. (To learn more about the borrower protections included in this bill, see our analysis.) This congressional proposal is too new to have gathered a list of official endorsements. But the regulatory changes we proposed last year received positive reactions from thousands of students and a long, diverse list of national, state and local of organizations. With your help, this momentum will carry over to Capitol Hill.

Urge your senators to support the Fair Payment Assurance provision in S. 359!

See the press statement from Robert Shireman, Executive Director of the Project on Student Debt

(This announcement was sent to the Project on Student Debt mailing list on February 5, 2007)