NEW: Schumer Endorses Call For Moratorium on the Department of Education Opposing Student Borrowers in Bankruptcy

FOR IMMEDIATE RELEASE:
February 12, 2022

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NEW: Schumer Endorses Call For Moratorium on the Department of Education Opposing Student Borrowers in Bankruptcy 

U.S. Senate Majority Leader Chuck Schumer (D-NY) is voicing his support for a moratorium on student loan bankruptcy discharge appeals spearheaded by the Department of Education.

During a Friday press conference, Senator Schumer was asked whether he supported the call for a moratorium on the Department of Education’s opposition to student loan borrowers seeking discharges in bankruptcy. Schumer responded, “Yes, absolutely, 100%.”

A recent coalition letter signed by 17 consumer and student advocacy groups, including Student Defense, called for the policy change in light of a recent string of Department-led bankruptcy oppositions, including two appeals that the Department announced it would withdraw after the public outcry. Schumer went on to say, “It’s outrageous that other people get to declare bankruptcy but students can’t.”

“We’re grateful for Senator Schumer’s support on this issue and hope the Department immediately halts opposing student borrowers in bankruptcy court and implements new permanent guidance,” said Student Defense President Aaron Ament.

A full copy of the coalition letter can be found on the Student Defense website.