Students, Borrower Advocates, and Academic Experts Testify, Urge Commission to Call for Strengthened Protections and Increase Transparency to Address the Growing and Underregulated Institutional Debt Crisis FOR IMMEDIATE RELEASE Thursday, March 26, 2026 Contact: Protect Borrowers Email: press@protectborrowers.org SACRAMENTO, CA  — Today, students, borrower advocates, and academic experts will testify before the Little Hoover Commission’s hearing entitled, “Student Institutional Debt in California.” The historic hearing, convened in response to a request  from Assemblymember Blanca Pacheco and the Campaign for California Borrower Rights coalition, marks the first time the independent citizens-legislative commission is investigating the growth of institutional debt and exploring potential policy solutions to better protect students. The experts, including representatives of the Campaign for California Borrower Rights coalition and legislative champion Assemblymember Pacheco, will sound the alarm on the need to address the more than $390 million in institutional debt owed to California public colleges and universities and the need to strengthen consumer protections and increase transparency. Witnesses will urge the Commission to support policies that rein in punitive debt collection practices, used by colleges and universities across California, that have been found to reduce college completion and trap students in poverty. The experts are also calling for much-needed transparency into the growing and underregulated institutional debt market by requiring schools to annually report on institutional debt and publicly disclose their debt collection policies and practices. Across California, students who owe institutional debt—debts owed directly to their college or university—face harmful and aggressive collections practices by their schools, including enrollment and degree holds that prevent students from re-enrolling in their coursework and receiving their hard-earned diplomas. Students can also see their tax refund and critical benefits offset by the Franchise Tax Board’s Interagency Intercept Collection Program and be referred to for-profit, third-party debt collectors that can report past due institutional debt on a student’s credit report, damaging their credit scores and making it harder to secure employment and housing. The hearing will inform the Commission’s eventual report and policy recommendations to the Governor and Legislature. It comes after a recent investigation   revealed  that over 40 public colleges and universities across California continued to include transcript withholding policies—a practice outlawed by the legislature back in 2019—on their websites. To watch the hearing live, click here . The hearing will feature testimony from expert witnesses including Assemblymember Blanca Pacheco, representing California’s 64th Assembly District and author of AB 850; Aissa Canchola Bañez, Policy Director at Protect Borrowers; Dalié Jiménez, Professor of Law at University of California Irvine School of Law and Director of the Student Loan Law Initiative; Charlie Eaton, Associate Professor of Sociology at University of California, Merced, and Co-Founder of The Higher Education, Race, and the Economy (HERE) Lab; Samantha Seng, Legislative Director & Policy Advisor at NextGen California; and Stephany Cartney, UCLA Alumna and Young Invincibles Youth Advisory Board member. Written witness testimonies are available here . Background Institutional debt is debt a student owes directly to an institution of higher education due to unpaid tuition or other financial obligations. The majority of this debt is incurred when students with federal aid have to unexpectedly withdraw before the end of a term, and their institution is required to return their aid money. Schools then charge the student for the amount of the returned aid, converting it into debt owed to the school directly. Across the nation, it is estimated  that 6.6 million individuals owe a collective $15 billion in institutional debt.  This is a multi-billion-dollar underregulated debt market that must be addressed by policymakers before it is too late. As a result of the public health and economic tool of the COVID-19 pandemic, institutional debts have ballooned, leading to more than 750,000 low-income students owing more than $390 million in student debt to California public colleges and universities.  These debts almost exclusively harm low-income students and those from racially marginalized communities because federal student aid—in particular, Pell Grants—is awarded based on need. The Campaign for California Borrower Rights coalition has been working in partnership with Assemblywoman Pacheco on legislation to strengthen protections for students with institutional debt and increase transparency into the growth of this debt and the practices schools use to collect it. Thus far, AB 1160 (2023) and AB 850 (2025) have been held on the suspense file by the Senate and Assembly Appropriations Committee. These forms of debt collection are drastically more harmful to the student than it is effective for the school. Academic research   found that the proposals included in AB 1160 would have been revenue positive for colleges and universities across the state; re-enrolling just 33% of students currently barred from re-enrollment due to outstanding institutional debts would have been able to bring in $215 million in tuition and fees annually. The analysis also showed that by re-enrolling students, universities could earn 500% more than what schools currently bring in through third-party debt collectors. Further Reading The Los Angeles Times coverage of the recent investigation into current transcript withholding policies by California public colleges and universities: Why California colleges can no longer withhold transcripts over unpaid fees A study of California students’ institutional debt accrual during the early years of the COVID-19 pandemic: Creditor Colleges: Canceling Debts that Surges During COVID-19 for Low-Income Students A nationwide study found that nearly 6.6 million individuals owe schools $15 billion in institutional debts: Solving Stranded Credits: Assessing the Scope and Effects of Transcript Withholding on Students, States, and Institutions A policy brief by California academics estimates that state consumer protections for students who owe institutional debts could be revenue positive for institutions: Policy Brief Virginia legislature study of institutional debts at Virginia public colleges and universities reveals that debts are disproportionately owed by Black students, Hispanic students, and low-income students: Report on Student Debt Collection Practices and Policies at Public Institutions of Higher Education (2022 Appropriation Act, Item 128.C) Press release when AB 1313 was signed into law and transcript withholding prohibited: Attorney General Becerra and Assemblymember Rivas Bill to Prohibit Colleges from Withholding Transcripts as Debt Collection Tactic Signed into Law ### About Student Debt Crisis Center Student Debt Crisis Center is a national advocacy organization with nearly 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.

FOR IMMEDIATE RELEASE March 20, 2026 Contact: Natalia Abrams Email: natalia@studentdebtcrisis.org WASHINGTON, D.C. – The Department of Education announced today that it will initiate a transfer of the student loan portfolio to the U.S. Department of the Treasury through an interagency agreement. The Student Debt Crisis Center (SDCC) strongly opposes this reckless transfer, as it will create more confusion and harm to Americans with student loan debt. Due to the ongoing affordability crisis, many borrowers are increasingly worried about their ability to make payments, and the added uncertainty is only deepening their confusion and stress. Today’s announcement follows several other developments that borrowers are closely tracking: The most affordable repayment plan created, the Saving on a Valuable Education (SAVE) plan, was deemed illegal by the Eighth Circuit Court, forcing 7 million borrowers currently enrolled in SAVE to be moved out of the plan. Many will face higher payments. Over 9 million Americans have defaulted on their student loan debt, while a few million are now delinquent. The Public Service Loan Forgiveness Program is under attack, unnerving millions of public service workers.  More than half a million borrowers are stuck in an application processing backlog, and the entire student loan system is set to be overhauled beginning on July 1. “For the past two years, borrowers have faced constant uncertainty and a troubling lack of communication from the Department of Education. Transferring the student loan portfolio to the Department of the Treasury will only deepen the confusion and chaos for millions who are still waiting for clear, reliable guidance,”  said Natalia Abrams, SDCC President & Founder. “Americans enrolled in the SAVE plan have yet to receive any meaningful direction about their options. Instead of fixing these failures, the Department now appears ready to hand off the portfolio in a reckless and disorganized manner—leaving Americans with student loan debt to wonder: what comes next?” The Department of Education announced that this transfer will be divided into three phases, starting with borrowers in default, followed by the entire student loan portfolio, and finally all federal financial assistance programs.  For more information or to schedule an interview, please contact Natalia Abrams at natalia@studentdebtcrisis.org . ### About Student Debt Crisis Center Student Debt Crisis Center is a national advocacy organization with nearly 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.

FOR IMMEDIATE RELASE CONTACT: Natalia Abrams natalia@studentdebtcrisis.org Filings say that the court killed the SAVE Plan unlawfully, substituting “private negotiation for judicial resolution” Washington, D.C. — Last Friday,   Public Goods Practice, LLP  (PGP) filed a motion to intervene in a federal lawsuit to protect the SAVE student loan repayment plan. Four student loan borrowers represented by PGP are asking a District Court Judge to reconsider his prior order in Missouri v. Trump  that seeks to  eliminate the SAVE Plan. The borrowers argue that the court’s decision unlawfully vacated the SAVE Plan after both the Trump Administration and plaintiff states jointly requested its dissolution, leaving the interests of millions of borrowers unrepresented. Over the past couple of weeks, courts made numerous conflicting orders in Missouri v. Trump . “In the span of eleven days, millions of student loan borrowers went from having full legal entitlement to loan discharge and affordable repayment under the SAVE Final Rule, to having that rule vacated by a two-sentence court order entered at the joint request of two non-adversarial parties,” the filings explain. “The Eighth Circuit’s mandate to vacate the SAVE Final Rule is a manifest error of law,” said Austin Hinkle, Managing Partner of Public Goods Practice . “If the Administration wants to raise monthly student loan payments by hundreds of dollars for my clients and the millions of Americans like them, it should do that through the appropriate legal process.” In following the direction of the Eighth Circuit’s mandate, the Court neglected Congress’s direction, failed to consider the interests of borrowers, and exceeded its authority, the filings explain. With the passage of the One Big Beautiful Bill Act (OBBBA), Congress ratified the SAVE Final Rule and explicitly chose to provide borrowers with a long transition period (through July 2028) in order to avoid exactly the type of chaos and confusion that millions are now facing.  If the court does not reconsider the case, the consequences will be immediate and severe for millions of borrowers, as they will face higher monthly payments and additional years of repayment. “Americans are struggling to pay for their basic needs,” said Julia Barnard, former Student Loan Ombudsman of the Consumer Financial Protection Bureau and current Higher Education Director at the Debt Collective.  “It is truly cruel and unwise for the Trump Administration and the attorneys general of the states in this action like Missouri, Georgia, and Florida to work this hard to raise monthly payments for millions of people.” “The recent ruling to end SAVE will cause me direct, severe financial harm by depriving me of the loan forgiveness I was promised and increasing my monthly payments on my remaining loans by hundreds of dollars,” said Plaintiff Heather Havens . “Meanwhile rent continues to rise, gas is going up, and my car insurance has increased by 30%. For me, asking the court to reconsider its ruling isn’t just about fairness; it’s a matter of basic survival.” These filings come only one week after four borrowers filed a lawsuit  ( Havens v. U.S. Department of Education ) to sue the administration alleging that the Department’s refusal to implement the SAVE Plan Final Rule violates federal administrative law by denying them the relief they are entitled by regulation and statute. The filings are available here: https://www.courtlistener.com/docket/68419292/state-of-missouri-v-trump/?filed_after=&filed_before=&entry_gte=&entry_lte=&order_by=desc   Background As Trump scrambles to contain the economic fallout of skyrocketing gas prices, his administration is blocking working class families’ rights to affordable loan payments and debt relief. The SAVE plan lowers monthly payments for borrowers enrolled in income-driven repayment and prevents unpaid interest from causing loan balances to balloon — reforms designed to ensure that student loan repayment remains affordable . But instead of doing its job and opening up the SAVE plan, the Administration is giving borrowers the run around and denying access to the most affordable payment plan in history.  “Millions of borrowers enrolled in the SAVE program in good faith because they were promised an affordable, fair path out of student debt,” said Natalia Abrams, President and Founder of the Student Debt Crisis Center . “Now, that promise is being threatened by political and legal maneuvering that is happening without borrowers’ voices in the room. People who followed the rules and trusted this program should not be punished with higher payments and deeper uncertainty about their financial futures." If the SAVE Plan expires, families will pay thousands of dollars more per year (see below) to repay their student loans, according to an analysis from Protect Borrowers . Congress recently ratified the SAVE program in passing the One Big Beautiful Bill Act by reaffirming the legal authority underlying the plan and establishing a transition period allowing borrowers to remain in the program through July 1, 2028 . Rather than complying with this direction and smooth borrowers’ transitions, the Administration is putting millions of borrowers at risk of delinquency and default. ### About Student Debt Crisis Center Student Debt Crisis Center is a national advocacy organization with 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.

FOR IMMEDIATE RELEASE March 12, 2026 WASHINGTON D.C.  – On February 27, the court dismissed the settlement that sought to end the Saving on A Valuable Education (SAVE) plan. Amid ongoing legal uncertainty, the Eighth Circuit Court ruled on March 9th to reverse the dismissal and directed the District Court to find the SAVE plan illegal without any significant hearing on the merits, and the lower District Court upheld that ruling on March 10th. The Student Debt Crisis Center (SDCC) condemns this decision. “Tuesday’s decision from the lower District Court to deem the SAVE plan illegal harms the 7 million Americans enrolled in SAVE and their families,”  said Natalia Abrams, President and Founder of SDCC.  “Borrowers are facing a deepening affordability crisis and must have access to the affordable payments and loan forgiveness they were promised. We are calling on the White House to do what is right for student loan borrowers and intervene in this decision to ease the pains of the affordability crisis for borrowers across the country. We need immediate action now to protect all borrowers from further financial harm.” In the last week, over 12,223 Americans have signed a petition  calling on the White House to uphold the SAVE plan for the more than 7 million Americans enrolled in it. The SAVE plan was the most affordable Income-Driven Repayment (IDR) plan ever created, offering benefits such as subsidized interest, shorter loan forgiveness timelines for low-balance borrowers, and IDR forgiveness. This decision comes amid a worsening affordability crisis that will certainly make everyday life more expensive for millions of Americans across the country. "Please. Millions of Americans make a student loan payment every month,”  shared a student loan borrower in Florida.  “The SAVE Plan helps an enormous amount of them be able to afford those payments and still live with dignity.” SDCC will continue providing updates and resources on any changes to the SAVE plan and will keep advocating on behalf of borrowers affected by this decision. For more information, to schedule an interview, or to request additional data, please contact info@studentdebtcrisis.org ### ABOUT Student Debt Crisis Center Student Debt Crisis Center is a national advocacy organization with nearly 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.

FOR IMMEDIATE RELASE CONTACT: Natalia Abrams natalia@studentdebtcrisis.org Lawsuit says government is unlawfully blocking lower payments and loan discharge for millions Washington, D.C. — Public Goods Practice, LLP filed a federal lawsuit today on behalf of four student loan borrowers seeking to compel the U.S. Department of Education to fully implement the SAVE student loan repayment plan and deliver relief without delay. On Feb. 27, a District Court Judge in Missouri dismissed a case brought by a coalition of Republican attorneys general, paving the way for borrowers to start benefiting under SAVE immediately. In the days following the dismissal, borrowers eagerly reached out to the Department to ask for SAVE Plan benefits and Senators demanded information about how and when the SAVE Plan would be implemented. The Department of Education refuses to provide the lower monthly payments, loan discharge, and other relief required under the regulation. “Millions of borrowers have already waited years for repayment terms that the law requires,” said Austin Hinkle, Managing Partner of Public Goods Practice . “Today, they are eligible to have their loans cancelled, but the government simply refuses to do it.” Four borrowers are suing the administration and alleging that the Department’s refusal to implement the rule violates federal administrative law by denying them the relief they are entitled by regulation and statute. The borrowers, represented by Public Goods Practice, LLP, a public-interest litigation firm founded by Austin Hinkle, a former Consumer Financial Protection Bureau official, have asked the court to order the Department of Education to: Fully implement the SAVE repayment plan as required under its Final Rule Provide loan discharge to borrowers currently eligible under the program Restore access to SAVE repayment benefits for borrowers denied relief The full complaint is available here: https://www.courtlistener.com/docket/72379585/havens-v-us-department-of-education/ Background: As Trump scrambles to contain the economic fallout of skyrocketing gas prices, his administration is blocking working class families’ rights to affordable loan payments and debt relief. The SAVE plan lowers monthly payments for borrowers enrolled in income-driven repayment and prevents unpaid interest from causing loan balances to balloon — reforms designed to ensure that student loan repayment remains affordable. For many borrowers, the difference between SAVE and other repayment programs can amount to thousands of dollars in additional costs each year and many additional years of repayment. But the Administration is giving borrowers the run around and denying access to the most affordable payment plan in history. “The number one question we receive during our student loan workshops is what borrowers should do if they are enrolled in the SAVE program,” said Natalia Abrams, President and Founder of the Student Debt Crisis Center , “Over the past two years, SDCC worked extensively with many of the millions of borrowers enrolled in SAVE. Today, these borrowers remain in prolonged uncertainty due to nearly two years of administrative forbearance. Immediate action is necessary to provide clear guidance and meaningful relief for borrowers who enrolled in SAVE in good faith and have been left in limbo.” Tens of thousands of borrowers are now immediately eligible for loan discharge, while millions more qualify for significantly lower monthly payments under the SAVE rule. The Administration is Siding With Servicers Over Congress and American’s Pocketbooks Without access to SAVE millions of people simply lack the money to make their monthly payments. Record numbers of student borrowers defaulted on their student loans this year and the Administration is fighting the most direct way to make Americans lives more affordable - by following the law and implementing SAVE. “The Department of Education should stop colluding with student loan servicers and cynically breaking the law by denying benefits to debtors,” said Julia Barnard, former Student Loan Ombudsman of the Consumer Financial Protection Bureau and current Debt Collective Higher Education Director. “In the end, this lawsuit provides the Trump Administration with a golden opportunity to do the right thing.” Congress recently ratified the SAVE program in passing the One Big Beautiful Bill Act by reaffirming the legal authority underlying the plan and establishing a transition period allowing borrowers to remain in the program through July 1, 2028. Rather than complying with this direction and smooth borrowers’ transitions, the Administration is putting millions of borrowers at risk of delinquency and default. “Congress designed income-driven repayment to ensure that student loans remain affordable,” Hinkle said. “When the government finalizes a rule implementing that promise, it has a legal obligation to follow it.” ### Plaintiff Comments Plaintiff Elizabeth Robeson of South Carolina qualified for cancellation when she entered the SAVE Plan in 2024 on a $12,000 loan from 1987 that financed a graduate degree from the University of Mississippi. Despite having made 325 qualifying payments of the 216 required under SAVE, she now owes more than $93,000. "I have never been out of compliance on this loan and have paid for decades," said Robeson. "The student loan crisis has cruelly forced millions of working Americans like me to live in a labyrinth with no clear exit despite our having followed the law.” Plaintiff Heather Havens is eligible for loan cancellation under the SAVE Plan because she has made 303 payments out of the required 300. “I simply want SAVE borrowers like myself to be able to fulfill the terms of the plan we signed up for,” said Havens. “To be able to repay our loans in good faith, buy back the months we were put into forbearance, and qualify for loan discharge if we meet the plan’s requirements. To me, it’s about fairness.” ABOUT Student Debt Crisis Center Student Debt Crisis Center is a national advocacy organization with 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.

by Ángel Rentería, SDCC Communications Associate On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law, laying the groundwork for a major overhaul of the student loan system. However, these changes are not yet fully implemented, as they must go through a negotiated rulemaking (Neg Reg) process.  Neg Reg is a process for changing federal regulations that involves key stakeholders and community engagement. The process consists of proposed regulations and public comment periods. In September of 2025, the Department of Education (ED) created the Reimagining and Improving Student Education (RISE) Committee, tasked with implementing all the changes outlined in the OBBBA.  The draft rule was published on January 30 and these changes to the student loan landscape will be detrimental to Americans across the country and have long-lasting impacts. This is what the new student loan landscape will look like, and how you can weigh in and take action. Already know the proposed rules and want to write a comment? Click here to learn how to submit your public comment. Federal Student Loan Lending Limits Starting July 1, 2026 Graduate Students : $20,500 per year and a $100,000 lifetime limit. Professional Students : $50,000 per year with a $200,000 total lifetime limit. Parent Plus Loans : $20,000 each year per dependent, with a maximum of $65,000 per year per dependent. All Borrowers : With the exception of Parent Plus Loan holders, all borrowers are subject to the maximum lifetime borrowing limit of $257,500 across all federal student loan types. Regardless if you pay back the entire loan balance, borrowers cannot take out additional loans once they reach that limit. Current students are exempt from these loan limits for 3 years if they are enrolled in a qualifying program with full-time status on or before July 1, 2026. Want to write your comment in opposition to these loan limits? Click here to jump to how to submit a public comment . Alongside these loan limits, the major overhaul of changes include: Existing repayment plans, Pay As You Earn (PAYE) & Income Contingent Repayment (ICR), will be eliminated by July 1, 2028. Only two repayment options will be available for anyone who borrows or consolidates a loan on or after July 1, 2026: RAP and the New Standard Plan. Repayment Assistance Plan (RAP): new Income Driven Repayment (IDR) plan with a $10 minimum payment and 30 year repayment term to achieve loan forgiveness. Creation of a New Standard Plan with repayment periods between 10 and 25 years. Elimination of Grad Plus Loans. Unsubsidized graduate loans will be offered instead. Borrowers will be able to go through the Loan rehabilitation process twice starting July 1, 2027. End of Unemployment Deferment and Economic Hardship Forbearance for new loans taken on or after July 1, 2027. Maximum forbearance of 9 months in a 24-month period for new loans taken on or after July 1, 2027. These changes limit access to higher education and will push prospective students to explore the private loan market, which offers no loan forgiveness, repayment plans, or borrower protections. These dangerous proposed changes are not yet finalized, and that’s where we all come in. It’s time for as many individuals as possible to voice their opposition to these potential changes. Take Action To Oppose These Changes Right now,  you can submit a public comment using the link below: Public Comment Link: https://www.federalregister.gov/d/2026-01912 Here are some tips to write an effective public comment: State your opposition to the proposed rule changes that would result in a complete overhaul of the federal student loan system. Select “Other” or “Federal Agency” on the “What is your comment about?” dropdown menu. Most importantly: add your story. If you or someone you know will be impacted by these changes, share how. If you won’t be impacted, share why this is bad for your community or the country as a whole. Feel free to use the following messaging to help guide your public comment: I am a concerned American in opposition to the proposed rule from the RISE Neg Reg committee. These changes are a disservice to Americans and will put them on a path of financial harm.  Limiting lending amounts, eliminating affordable repayment plans, reclassifying professional degrees, and the changes in this rule will push Americans into the private loan system, resulting in predatory lending practices, higher interest rates, and virtually no borrower protections. All this comes as the government does not provide funding for higher education. These changes will harm the American economy as borrowers will have unaffordable monthly payments and even tighter budgets. Additionally, these changes will result in a professional shortage across fields that require specialized degrees ,  such as nursing, teaching, legal support, and more. In order to preserve the stability of the American economy, these changes cannot be implemented. [Add Personal Remarks Here] I hope that you stand in opposition to these changes and preserve the well-being of 42 million Americans with student loan debt and future borrowers. ### About the Student Debt Crisis Center Student Debt Crisis Center is a national advocacy organization with nearly 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.

By Ángel Rentería, SDCC Communications Associate Amidst the looming student loan changes, new data reflects that Americans with student loan debt are falling behind on payments and entering default more than ever before. Nearly 25% of all student loan borrowers are behind on their payments, with over 5 million     already having entered default. In the coming months, this number is projected to soar to over 8 million borrowers in default. In 2025 alone, a borrower entered default every 9 seconds . These are not just unacceptable statistics; they are people with families and loved ones, and the impact of default is monumental, disruptive, and personal, affecting every aspect of their lives. “This student loan has put me in so much debt it’s hard for me to pay bills or even keep up on any. It has failed my credit score and I am unable to get a tax return. It is always taken when I really need it.”  - Breanna, Ohio, $12,000  “I’m 83 years old. I only have social security. Cannot pay. My school closed and never refunded my money.”  -Lois, Ohio, $100,000  “I got my student loan for nursing school. I graduated over 20 years ago and still owe. Paid faithfully for over 10 years to then realize that I was paying interest that entire time. My loan should have been paid off after all that time. I couldn’t afford the monthly payment secondary to a change in my life. Starting a family and also chronic sick conditions didn’t allow me to make monthly payments. Several attempts made to decrease payments with no results. Unfortunately I stopped making payments because I had to decide whether to buy food for my family or make a student loan payment I couldn’t afford. I was able to defer the payments during Covid for about 1-2 years. I am now receiving payment statements and still can not afford it. The amount due with interest is rising every day. The stress it has put me and my family is unbearable. I need help and don’t know where to even start.”  -Amarilis, Connecticut, $22,000  “Took graduate loans to grow professionally. Almost to the end then the university lost additional assistance funds and had to leave with an incomplete grade. And a severe debt. Now I hear threats from the media that they are going to seize income from people. I just lost my job. Barely can make it to the end of the week. Might lose the roof and car, and have issues getting utilities and food to take care of my babies and parents. ”  -Angela, Texas, $Unknown  “I took out loans when I was a lot younger and able to work 2,3 jobs. I am 73 now and cannot work as hard and am unable to pay this big debt. I got stage 4 breast cancer, had to quit school, never received my degree. I am very nervous about it, it causes anxiety and fear.”  -Suzan, Pennsylvania, $40,000 “I can not sleep sound and even do any social activities like before worrying about my student loans every minute. I think of the loans and right now it’s very difficult for my family and I to even meet up with our bills and some common stuff in the house and with this situation things will even get more difficult for me because right now I have to work two full time jobs to support my family and also pay some of our bills and wait for another check to complete the payment.”  -Loidy, Maryland, $150,000 “Got my first associate degree at Indiana Business College. They changed name to Harrison College before graduation. I was told I'd be able to afford loan payments (I couldn't) with a degree in medical assisting. Harrison made me sign over a check made out to me but mailed to them for overpaid funds from fafsa. They said I couldn't graduate unless I paid this money due. They filled out my fafsa forms from the start. I thought that was just how it works. I had never been to college before. So I was unable to afford student loans, child care and car loan payments along with food, phone and insurance. My children and I still lived with my mom. Went back to school to obtain an associate degree in nursing. Currently I work as an RN. Student debt and interest snowballed when I was diagnosed with breast cancer and received treatments. I was barely working and barely able to afford to live let alone pay student loans. They didn't care and still requested payments since I was still receiving some income. Moved out from my mother's before getting cancer. I just can't afford to pay payments. They are ridiculously high.”  -Rebecca, Indiana, $100,000  “I graduated in 2015. I haven't been able to pay a lot towards my loans due to being in between jobs and unemployment. I haven't been able to find a job in over a year. I'm still without a job or income as I complete this survey. If I was employed, I would most likely be trying to get a place of my own and dependable transportation. These loans have dropped my credit score significantly along with credit card debt that I incurred. I don't know if I'll ever be able to pay this debt off.”  -Jackquline, North Carolina, $80,000 These individuals’ stories give us an intimate glimpse into the hardships faced by millions of borrowers across the country. No one should ever be punished for pursuing higher education or for struggling financially. It is time for the Department of Education and the federal government to put an end to the student debt crisis and to the punitive measures against borrowers struggling or unable to afford their monthly payments. In order to safeguard the economic well-being of struggling Americans with student loan debt and their families, there needs to be a permanent end to default collections.  Help us support millions of individuals and families like these by adding your name to our petition calling for a permanent end to collections on defaulted student loans. ### About the Student Debt Crisis Center Student Debt Crisis Center is a national advocacy organization with nearly 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.

FOR IMMEDIATE RELEASE January 16, 2026 Contact: Natalia Abrams Email : info@studentdebtcrisis.org Washington, D.C.  – The Student Debt Crisis Center (SDCC) welcomes today’s announcement that the Department of Education will pause efforts to garnish wages and seize tax refunds for the estimated 5 million student loan borrowers who have defaulted on their federal student loans. This pause follows sustained pressure from borrowers and advocates, including 17,328 supporters  who signed SDCC’s petition calling for an immediate halt to wage garnishment. As a result of this community-driven advocacy, millions of Americans with defaulted student loans can now breathe a little easier without the fear of losing their paychecks or tax refunds. “The pause on wage garnishments and tax refund seizures is an important and necessary first step to mitigate harm to millions of struggling Americans amidst the national affordability crisis. Americans' financial well-being and livelihoods deserve to be protected,” said Natalia Abrams, SDCC President & Founder . “While this is a welcome first step, this is only a temporary pause. The Department of Education must offer comprehensive student loan debt relief, and agree to stop all collections practices moving forward. No one should ever face the possibility of having their hard-earned wages or tax refunds taken away from them.” SDCC and partner organizations – Protect Borrowers, American Federation of Teachers (AFT), Debt Collective, NAACP, National Education Association, and Young Invincibles– sent a letter  to Secretary of Education Linda McMahon expressing extreme concern regarding the resumption of wage garnishment, and calling for an immediate implementation of borrower safeguards. As both the growing default cliff  and tax season approaches, it is imperative that the Department of Education moves toward a more affordable reality for Americans with student debt. In the meantime, SDCC recommends that borrowers in default should explore their options to get out of default, as this wage garnishment and treasury offset pause is temporary. For more information or to schedule an interview, please contact Natalia Abrams at info@studentdebtcrisis.org . ### ABOUT Student Debt Crisis Center Student Debt Crisis Center is a national advocacy organization with 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.

FOR IMMEDIATE RELEASE January 7, 2026 Contact: Natalia Abrams Email: info@studentdebtcrisis.org Washington, D.C.  – After more than 5 years, the Department of Education (ED) announced on December 23, 2025 its intent to resume administrative wage garnishment for Americans who have defaulted on their federal student loans. According to ED, beginning the week of January 7, over 1,000 Americans will receive letters notifying them that their wages will be garnished within 30 days. The number of Americans receiving these notices will surge in the coming weeks, and the risk of withheld paychecks and tax refunds will increase for millions in the months ahead. The Student Debt Crisis Center (SDCC) unequivocally condemns the Department of Education’s decision to resume wage garnishments in the middle of a worsening affordability crisis in the United States and demands an immediate halt to these debt collection practices. As the Department of Education prepares to seize wages and tax refunds, SDCC is urging borrowers who have defaulted on their federal student loans to explore their options.  “This is not a personal failure – it is a failure of the Department of Education. In just one year under the Department’s current leadership, a 50% workforce reduction has coincided with an 800,000 application backlog for Income-Driven Repayment plans, harming millions of families and communities,” said Natalia Abrams, SDCC President & Founder . “These actions will only add to the confusion and delays. With more than 5 million Americans already in default and millions more at risk, the Department is choosing punishment over protection by garnishing wages and tax refunds. It must immediately halt these actions and protect Americans’ livelihoods.” One borrower with defaulted loans shared,  “ This student loan has put me in so much debt, it’s hard for me to pay bills or even keep up on any. It has failed my credit score and I am unable to get a tax return, it is always taken when I really need it. ” “ I completed my degree when I was in my 50s. I was determined to get my degree. For almost a decade I had no difficulty making my payments. My husband became ill and passed away, making it financially difficult to keep my bills up to date. My rent has gone up and an increase in food prices makes it difficult to budget on a fixed income every month, ” another borrower shared. The lasting impacts of wage garnishments will be detrimental to Americans. While the country grapples with a worsening affordability crisis, borrowers are struggling to stay afloat. Garnishing from hard-earned wages puts Americans in even greater precarious financial situations. The Department of Education must refocus on its core mission of serving the American public . For more information or to schedule an interview, please contact Natalia Abrams at info@studentdebtcrisis.org . ### ABOUT Student Debt Crisis Center Student Debt Crisis Center is a national advocacy organization with 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.

FOR IMMEDIATE RELEASE December 9, 2025 Washington, D.C.  – Today, the U.S. Department of Education announced that the Saving on A Valuable Education (SAVE) income-driven repayment plan will be coming to an end. More than 7 million borrowers currently enrolled in SAVE will be required to move into a different repayment plan in the near future.  While the settlement agreement that affects the SAVE plan is still pending court approval, SDCC is urging borrowers to review their repayment options ahead of any transition process . “Today’s decision from the Department of Education is devastating for the nearly 8 million student loan borrowers who depended on the SAVE plan to keep their payments affordable. Borrowers have endured years of uncertainty, and this only exacerbates the confusion and financial strain they are already facing,” said Natalia Abrams, President and Founder of SDCC. “Borrowers need real relief and stability, not a return to unaffordable, costly student loan payments that push them closer to financial crisis.” Reductions in force (RIFs) at the Department of Education have already led to severe backlogs and delays in processing IDR applications. It is negligent for the Department to end the SAVE plan without a clear timeline, assuming it can handle the transition of more than 7 million borrowers into more expensive repayment programs. This failure makes the Department of Education complicit in deepening the affordability crisis in America. In response to the announcement, the Student Debt Crisis Center (SDCC) will host a workshop tonight, December 9, at 7 PM ET / 4 PM PT , to help borrowers understand what this change means, how to transition into other repayment plans, and what steps they can take immediately to protect themselves. For more information or to schedule an interview, please contact info@studentdebtcrisis.org ### ABOUT Student Debt Crisis Center Student Debt Crisis Center is a national advocacy organization with 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.

FOR IMMEDIATE RELEASE October 22, 2025 Contact: Sabrina Calazans Email: sabrina@studentdebtcrisis.org Washington, DC  — As of October 2025, changes to the federal student loan system under the "One Big Beautiful Bill Act" (OBBBA) have yet to take effect. However, right now, millions of American borrowers are already grappling with increasing economic uncertainty.  A new report from the Student Debt Crisis Center (SDCC) and Civic Nation exposes deep public distrust in the federal government, extreme financial anxiety, and a poor economic outlook, underscoring an urgent need for transparency, clear and accessible information, and meaningful financial relief. The survey had 5,976 respondents.  Key survey findings include: Increased Financial Anxiety - 73% of borrowers associate student debt with stress, anxiety, and depression. Lack of Awareness - 1 in 3 borrowers are unaware of changes happening through OBBBA, and 51% of people in default are unaware of these changes. Widespread Distrust - Only 34% of borrowers think of the Department of Education website as a trusted messenger, and 1 in 4 borrowers trusts emails from the Department of Education.  Increased Civic Engagement - 82% of borrowers plan to vote in the 2026 elections, with the current student debt landscape directly impacting their desire to take civic action. Despite borrowers’ efforts to manage their student loans, many feel overwhelmed and abandoned due to the federal government’s failure to provide clear, consistent communication and a functional support system. As the Department of Education prepares to implement changes under the OBBBA, the survey reveals serious financial consequences and insecurities stemming from the lack of clear guidance for borrowers navigating an already complex student loan system. “Borrowers are doing everything right. They’re showing up, asking questions, and trying to stay on track– but the system is failing them,” said Natalia Abrams, President of the Student Debt Crisis Center . “The lack of clear guidance, especially during such a massive overhaul, as rates for default and delinquency are skyrocketing, leaves people confused, anxious, and dangerously close to financial harm.” As borrowers attempt to understand what changes will affect them, there have been major shifts in whom student loan borrowers recognize as trusted messengers regarding communications. A very stark increase in disapproval of the handling of the federal student loan portfolio has decreased public trust in the federal government. Similarly, there has been a decrease in trust in the communications coming from the Department of Education. On the other hand, trust in nonprofit organizations like the Student Debt Crisis Center has increased compared to the previous year, showing the valuable impact of grassroots organizations providing accessible information and support. The report demands urgent action from policymakers, institutions, and loan servicers to guarantee borrowers receive accurate information, accessible resources, and the relief they rightfully deserve. Clear, streamlined communication and support are essential for borrowers to navigate their student loan debt with confidence and make informed decisions. These steps are critical to rebuilding trust in both the student loan system and the federal government. For more information, to schedule an interview, or to request additional data, please contact Sabrina Calazans at sabrina@studentdebtcrisis.org . To read the survey report and find quotes from borrowers,   click here .  ### ABOUT Student Debt Crisis Center Student Debt Crisis Center is a national advocacy organization with 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here. ABOUT Civic Nation Civic Nation is an impact hub for ideas, leaders, and initiatives that strengthen civic culture, power, and participation. Rooted in purpose and powered by people, Civic Nation brings together individuals, grassroots organizers, industry leaders, brands, and influencers to take on the biggest issues of our time. Civic Nation is home to five national initiatives: ALL IN Campus Democracy Challenge, Change Collective, It’s On Us, We The Action, and When We All Vote. Learn more here .

Unpacking emotional, financial, and civic consequences