As millions of borrowers are scheduled to begin repaying their student loans later this year, many are at risk of falling into a permanent cycle of nonpayment and default on their loans unless the U.S. Department of Education makes sweeping changes to repayment and collections rules. Pew research has found that 35% of all borrowers have ever had a defaulted loan, and 66% of those who have experienced default have done so more than once. Even with Department of Education initiatives such as Fresh Start and proposed changes to income-driven repayment, the overall collections system and available pathways out of default remain severe, inflexible, and counterproductive. Now is the time to reform this system before borrowers once again face the prospect of default on their loans post-resumption of payments.
The panel provided critical background for understanding the need for default reform and potential policy options. Topics will included who defaults, the short- and long-term consequences that default has on borrowers, and what more the department can do over the next year to help borrowers stay in repayment and out of default.
Regan Fitzgerald
Project on student borrower success
The Pew Charitable Trusts
Twitter: @R_Fitzgerald9
Jason Cohn
Center on Education Data and Policy
Urban Institute
Twitter: @js_cohn
Brian Denten
Project on student borrower success
The Pew Charitable Trusts
Twitter: @briandenten
Ilan Levine
Student loan research project
The Pew Charitable Trusts
Sarah Sattelmeyer
Education, Opportunity, and Mobility
New America
Twitter: @sellensatt
3:00 p.m. Welcome and introduction
3:10 p.m. Moderated panel discussion
4:00 p.m. Audience Q&A
4:30 p.m. Reception and networking