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Statement from The Campaign for California Borrowers’ Rights in Response to the California State ...


FOR IMMEDIATE RELEASE   

JUNE 30, 2022

Contacts: 

Winston Berkman-Breen, winston@protectborrowers.org

Statement from The Campaign for California Borrowers’ Rights in Response to the California State Budget Agreement for 2022-2023

The Campaign for California Borrowers’ Rights is the statewide coalition of students, higher education advocates, and borrower protection organizations. 

(SACRAMENTO, CA) - THURSDAY, late yesterday the California State Legislature passed an historic $300 billion State Budget for 2022-23. The final budget invests $10 million in a statewide Student Loan Borrower Assistance Program administered by the Department of Financial Protection and Innovation (DFPI). 

There are nearly four million Californians who are carrying a total of over $145 billion in student loan debt. Federal student loan payments are currently set to resume in September after more than two years and over 60 percent of borrowers report they are not ready for payments to resume. There is also a once-in-a-generation opportunity for public service workers to access Public Service Loan Forgiveness (PSLF) who were previously ineligible, through a limited PSLF waiver which expires on October 31, 2022.  The goal of DFPI’s Borrower Assistance Program is to reach qualified borrowers through an outreach campaign and help them enroll in the PSLF program before the deadline.  This investment will also increase Californians’ awareness of DFPI as a student loan borrower resource and build out a network of direct service providers across the state.

Aligned with California’s efforts to support student loan borrowers, the Legislature is currently advancing two resolutions that will declare August 2022 as Student Debt Awareness Month. HR 118 (Bonta) and SR 96 (Limón) will continue California’s leadership protecting student loan borrowers and highlight the critical, upcoming deadlines facing those with student loan debt. 

In response, the California Campaign for Borrowers’ Rights issued the following statement: 

“We thank Governor Newsom and the State Legislature for supporting student borrowers in this year’s state budget. The $10 million budget appropriation is the largest allocation of funds by any state in support of student borrowers.  This funding will  benefit the state’s more than 4 million student borrowers and allow the state’s leading student borrower protection agency to conduct a statewide outreach, education, and assistance campaign. Given the magnitude of the student debt crisis, recent reforms to the student loan system, and the exiting of student loan servicers from the marketplace, this campaign is of critical importance.” “Each dollar invested in student loan support systems will leverage massive savings for individual borrowers  This timely investment can be immediately implemented as the state moves to recognize August 2022 as Student Debt Awareness month.”

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Consumer Reports

Student Debt Crisis Center

NextGen California

Young Invincibles

Student Borrower Protection Center

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