Tell the Feds: Adopt Five-Point Plan for
Fair Loan Payments

If you share our concerns about the effects of rising student debt on educational opportunity, economic security, and family life, now is the time to speak out.

The U.S. Department of Education is officially seeking ideas for improving its rules and regulations for student loans. We have developed a Five-Point Plan for Fair Loan Payments that fits the bill. It will help reduce the burdens of student debt by:

1. Limiting student loan payments to a reasonable percentage of income.
   
2. Recognizing that borrowers with children have less income available for student loan payments.
   
3. Protecting borrowers from high interest charges when they face hardship situations.
4. Canceling remaining debts when borrowers have made regular payments for 20 years.
5. Simplifying the application process for hardship deferrals and other repayment options.

This plan has been presented to the Department by an unusual coalition of student, parent, loan industry, and higher education groups.

Click here to ask the Department of Education to include the Five-Point Plan for Fair Loan Payments in the upcoming “negotiated rulemaking.” All comments must be received by November 9, 2006.

You can also testify at the Department’s live hearings in Berkeley, CA (September 19); Chicago, IL (October 5); Orlando, FL (November 2); and Washington, DC (November 8). Let us know if you plan to speak about student debt issues at a hearing.

(This announcement was sent to the Project on Student Debt mailing list on September 13, 2006)