Sallie Mae and USA Funds have spent millions lobbying Congress to gain special privileges that protect their business and make it impossible for very many student borrowers to ever be relieved of the burdensome debts.
Restore bankruptcy protection to student loans.
Restore the statute of limitations to student loans.
Remove the unconstitutional ability for these lenders to use an administrative garnishment to withhold money from federal payments.
Place student loan collectors under the same debt
collection laws as all other debt collectors are subject to.
Remove from defaulted student loans the 23.8% biannual penalty which is wrongly characterized as a collection fee. This penalty plus the 8% interest places these lenders in the same category as small loan companies.