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HI SCR139

Concurrent Resolution

Status

Engrossed

4/6/2017

Primary Sponsor

Michelle Kidani

Click for details

Origin

Senate

2017 Regular Session

AI Summary

  • Urges the President of the United States and Department of Education to reconsider Dear Colleague Letter GEN 17-02 (issued March 16, 2017) that revoked previous guidance prohibiting collection fees on defaulted Federal Family Education Loan Program loans.

  • Calls for reinstatement of President Obama's July 10, 2015 Dear Colleague Letter GEN 15-14, which barred loan guaranty agencies from charging up to 16 percent in collection fees on principal and accrued interest if borrowers entered rehabilitation within 60 days of default.

  • Notes that approximately 7,000,000 borrowers with $162,000,000,000 in Federal Family Education Loan Program loans held by guaranty agencies could be affected by the current policy allowing collection fees.

  • Requests that the Secretary of Education and Trump Administration support legislation or administrative action to allow borrowers in default to rehabilitate loans and repay student debt without being charged collection fees by guaranty agencies.

  • Directs transmission of certified copies to the President, Secretary of Education, U.S. Senators Lamar Alexander and Elizabeth Warren, U.S. Representatives Virginia Foxx and Suzanne Bonamici, and Hawaii's Congressional delegation.

Legislative Description

Urging The President Of The United States And United States Department Of Education To Reconsider The Statements Of Policy Reflected In The Dear Colleague Letter Gen 17-02 Issued On March 16, 2017, And Reinstate Previous Guidance That Prohibited Student Loan Guaranty Agencies From Imposing Collection Fees On Borrowers In Default Who Promptly Enter Rehabilitation Agreements.

Student Loan Guaranty Agencies

Last Action

Referred to HED, FIN, referral sheet 41

4/7/2017

Committee Referrals

Higher Education4/7/2017
Ways and Means3/29/2017
Higher Education3/15/2017

Full Bill Text

No bill text available