Rep. Haley Stevens, Colleagues Introduce Clean Slate Legislation Delivering Relief for Student Loan Borrowers
Washington, D.C. – Today, Michigan Congresswoman Haley Stevens (MI-11) joined Congresswomen Nikema Williams (GA-05), Alma Adams (NC-12), and Deborah Ross (NC-02) in introducing a suite of legislation designed to help federal student loan borrowers recover from default and rebuild their financial futures.
The Clean Slate through Consolidation Act, Clean Slate through Rehabilitation Act, and Clean Slate through Repayment Act would remove default records from the credit histories of borrowers who have taken meaningful steps to resolve their federal student loan debt.
Across Michigan and the nation, millions of borrowers face long-term financial barriers due to student loan defaults, even after taking steps to repay their debt. These barriers can limit access to housing, transportation, and small business opportunities. The Clean Slate legislative package ensures that borrowers who act responsibly are not permanently penalized. The Clean Slate through Consolidation Act, which Stevens wrote, wipes away borrowers’ bad credit history from a defaulted student loan once they have obtained a Federal Direct Consolidation Loan.
“Michiganders who make a good faith effort to pay off their student loans deserve a fair chance to reestablish their credit and participate in our economy,” said Rep. Haley Stevens. “I am proud to join with my colleagues on this legislation that empowers borrowers to get back on track and start saving for their future.”
“I struggled to repay my student loans long after graduating. I understand the burden they place on a budget,” said Congresswoman Nikema Williams. “Today, default and delinquency rates are reaching record highs, while Trump kicks over 7 million people off of the SA VE Program. We cannot abandon our students to drown in their debts. The student debt crisis demands a response, especially while everything from housing to groceries is getting more expensive. The Clean Slate series offers people the second chance they need to build on their education and escape the crushing weight of student loan debt.”
“As a first-generation college student, I know how hard it is to make ends meet and pay for college,” said Congresswoman Adams, founder and co-chair of the HBCU Caucus. “That’s why the Clean Slate Series is so necessary. Burdensome student loan debt is dragging down millions of our best and brightest, preventing borrowers across generations from qualifying for the credit they need to buy a house, lease a car, or start a business. These three bills help borrowers hit the reset button and unlock a brighter future for themselves and their families. Especially in the wake of the Supreme Court’s denial of debt relief to millions of Americans, student loan debt remains a serious and often unfair burden for our families. I promised action on student loan debt, and with these three bills, Congresswomen Stevens, Ross, Williams, and I intend to deliver.”
“Our nation is facing an unprecedented student debt crisis, and many young Americans are burdened with an adverse credit history as a result,” said Congresswoman Ross. “Students should not be punished for seeking an education, but the high cost of learning has prevented many young people from pursuing their dreams. I’m proud to join my colleagues in introducing a series of bills that will help borrowers recover from crippling student loan debt and reach their goals – whether it’s buying a home, owning a car, starting a business, or saving for the future.”
This legislation has been endorsed by the National Education Association (NEA), American
Federation of Teachers (AFT), The Institute for College Access and Success (TICAS), the
National Association of Student Financial Aid Administrators (NASFAA), and the Center for Responsible Lending.
Text of the Clean Slate through Consolidation Act.
Text of the Clean Slate through Rehabilitation Act.
Text of the Clean Slate through Repayment Act.
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