The single most important investment anyone can make in their future is to pursue higher education. But the one thing I often hear from families is that they are worried about the cost.
Too many students are graduating from college feeling burdened by their student loan debt. The Obama Administration has – and will continue to – make college more affordable through increased Pell Grants and education tax credits, while improving transparency so that students and families have the information they need to select schools that provide the best value. Today, we are building on the Administration’s success helping students manage their debt and stay on track.
My team at the U.S. Department of Education been working with our federal partners to make sure that student loan borrowers are getting accurate information about how to avoid – or get out of – delinquency and default. And we’ve been doing more to improve student loan servicing and protect borrowers so they receive the treatment and respect they deserve, regardless of the type of loan they have.
But across the Administration, we want to do more.
That’s why today, President Obama has proposed a new Student Aid Bill of Rights that outlines a series of new actions that direct the Department of Education, Department of Treasury, Office of Management and Budget, Office of Science and Technology Policy and Domestic Policy Council, working with the Consumer Financial Protection Bureau and the Social Security Administration, to make paying for higher education an easier and fairer experience for millions of Americans.
- Develop a state-of-the-art – and simple – process for borrowers to file complaints involving their federal student aid, and working with a team across the federal government to figure out the best way to address those complaints.
- Make sure the banks that service federal loans are held to high standards and provide better information to borrowers; and raising the bar for debt collection to make sure that fees charged to borrowers are reasonable and that collectors are fair, transparent, and help borrowers get back on track.
- Use innovative strategies to improve borrowers’ experience and improve customer service. At the Department of Education, we are committed to finding new and better ways to communicate with student loan borrowers and to creating a centralized, easier process for repaying loans. And we will see what changes to regulations and legislation, including bankruptcy law, may be necessary to protect borrowers – regardless of the type of loan they have.
- Work across the federal government to see what lessons can be learned from similar situations, like mortgage and credit card markets and other performance-based contracts, to help us make sure that ultimately, we are continually strengthening consumer protections for students.
It is our responsibility to make sure that the more than 40 million Americans with student loans are aware of resources to help them manage their debt, and that are doing everything we can to be responsive to their needs. The Student Aid Bill of Rights builds on the efforts our Administration has been taking over the last several years to make college more affordable and continues to chip away at the burden of student debt – so no one should feel overwhelmed by their student loans.