CBA on Warren, Clyburn Student Loan Plan

July 23, 2019
Nick Simpson

CBA on Warren, Clyburn Student Loan Plan

Like all other similar plans, this proposal fails to make college more affordable for future generations

 

WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt today issued the following statement on legislation introduced by Sen. Elizabeth Warren (D-Mass.) and Rep. Jim Clyburn (D-S.C.) forgiving student loan debt:

 

“This proposal does nothing to decrease the cost of college and does not help future students. It is short-term, short-sighted and comes up short in every way except its cost to taxpayers.”

 

NOTE: To help ensure the federal government responsibly serves those with the most need and takes steps to begin reducing the cost of college, which the New York Federal Reserve Bank has said is fueled by virtually unlimited federal lending, CBA has recommended the following measures:

 

  • Increasing the availability of Pell Grants;
  • Ending unlimited PLUS loan borrowing to help reduce tuition increases;
  • Implementing “Know Before You Owe” disclosures to clearly explain the terms of federal loans;
  • Renaming so-called “Award” letters provided by colleges to the more accurate “Financing” letters and having them clearly differentiate loans from grants and scholarships;
  • Requiring school certification of private education loans;
  • Utilizing economist-preferred fair value accounting to show the true cost of federal student loans; and
  • Requiring detailed public reports on the performance of the federal government’s direct loan portfolio.

 

Learn more about CBA’s poll on voters attitudes about student loans and student loan recommendations here: www.consumerbankers.com/EducationFunding.

 

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About the Consumer Bankers Association:

The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.