Congresswoman Nikema Williams (GA-05), who also serves as Chair of the Georgia Democratic Party, joined The Rashad Richey Morning Show to highlight a recently introduced bill that would ease the burdens of Americans who may have experienced default on a student loan. “Let’s face it… we are a credit-centric country. This legislation has the potential of helping millions in America regain control of their credit… a real game-changer” said Dr. Rashad Richey.
WASHINGTON – On Thursday, Congresswomen Nikema Williams (GA-05), Deborah Ross (NC-02), Haley Stevens (MI-11), and Alma Adams (NC-12) introduced the Student Loan Rehabilitation and Credit Score Improvement Act. The Congresswomen were joined by eight additional original cosponsors in introducing the bill.
One way for student loan borrowers to get out of default is through loan rehabilitation. When a borrower successfully goes through the rehabilitation process, the record of default is removed from their credit history. However, the other adverse credit history related to that loan, like the missed payments leading to default, are not removed and continue to impact borrowers’ ability to get a job, buy a car, and rent an apartment or house. This bill would ensure that all negative credit reporting related to a previously defaulted student loan is removed from a borrower’s credit history once the borrower has completed student loan rehabilitation.
“I’m one of the 44.7 million Americans who are still paying off student loans and, like me, too many Georgians remain burdened by student loan debt well after graduation day,” said Congresswoman Williams. “I am determined to find steps to relieve significantly burdened borrowers as I continue to push for student debt cancellation. My common sense bill will help borrowers who have worked hard to rehabilitate their defaulted loans and ensure they truly get a second chance. The American people were told that college would be a path to the American dream, but student debt has created a uniquely American nightmare. In Congress, I will do all I can to provide comprehensive relief and make the American dream a reality for debt-burdened borrowers.”
The Student Loan Rehabilitation and Credit Score Improvement Act is endorsed by the American Association of State Colleges and Universities, American Federation of Teachers, Center for Responsible Lending, National Association of Student Financial Aid Administrators, National Consumer Law Center (on behalf of its low-income clients), National Education Association, Partnership for Southern Equity, Student Government Association of the Georgia Institute of Technology, and The Institute for College Access and Success.
“The Student Government Association of the Georgia Institute of Technology supports the Student Loan Rehabilitation and Credit Score Improvement Act introduced by Congresswoman Nikema Williams,” said Samuel Ellis, Georgia Institute of Technology Undergraduate Student Body President. “As representatives of students of the University System of Georgia, we keep issues pertaining to higher education at the forefront of our advocacy. 24% of undergraduate students at the Georgia Institute of Technology utilize federal student loans to cover the cost of their education, and in 2016, around 1.3% of this population defaulted on their loan. With economic insecurity resulting from the pandemic and rising tuition, this act would take steps to improve student financial wellbeing and mitigate student loan debt.”
“All too often, student loan debt becomes a long-term ‘debt sentence’ for borrowers,” said Randi Weingarten, President of the American Federation of Teachers. “This is particularly true for anyone who falls behind in their loan payments: Even after getting their loan back in good standing, student loan payment history can negatively affect their ability to buy a home, make it more expensive for them to purchase a car, and otherwise have a negative ripple effect on their financial lives. The Student Loan Rehabilitation and Credit Score Improvement Act would ensure that negative credit reporting on loan defaults doesn’t live on borrowers’ credit history forever. It would mean that once a loan is paid, borrowers can get back on the right track, preventing student loan debt from being a lifelong burden.”
Dr. Rashad Richey is an Emmy nominated television commentator, TV Anchor for 'Indisputable with Dr. Rashad Richey', and Political Analyst for The People's Station V-103 FM who was voted 'Best Talk Radio Personality in Atlanta' by readers of the Atlanta Journal-Constitution and named 'Most Trusted Voice in Atlanta' by the Atlanta Business Journal. The Rashad Richey Morning Show always brings you relevant information, best debates, and most insightful interviews on radio. Tune in every weekday morning from 7am-10am on News and Talk 1380-WAOK, V-103FM (HD3), www.WAOK.com, or on the Audacy App.