Yesterday, a group of 30 attorneys general from throughout the United States and its territories issued a letter to members of the U.S. Senate urging stronger federal student loan protections during the COVID-19 pandemic.
Previously, the Department of Education suspended the collection of its student loans on March 25. Then CARES Act, which became law on March 27, provided certain protections for borrowers whose student loans were held by the federal government. However, there was some concern that commercially-held student loans fell by the wayside, and borrowers of such loans were left in the dust.
The attorneys general letter urges the Senate to move forward with S. 4237, titled the Student Loan Fairness Act of 2020. The letter states that the proposed law would help close the gap and extend protections to borrowers of commercially-held FFEL loans and institutionally-held Perkins loans.