For Immediate Release
March 29th, 2021

Contact: Amanda Farnan, afarnan@dccouncil.us or (202) 355-8431

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Councilmember Christina Henderson introduces The New Student Loan Borrower Bill of Rights

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Washington, DC -- Today, Councilmember Christina Henderson (At-Large) introduced legislation to address the ongoing student loan debt crisis and better protect over 116,000 District of Columbia student loan borrowers from unfair practices by lenders and loan servicers.

More than 45 million student loan borrowers collectively owe $1.7 trillion of student loan debt, making student debt the second largest class of consumer debt in the country. The District’s 116,000 student loan borrowers collectively owe $7.5 billion in student loan debt, with the average balance exceeding $64,000. These borrowers owe more than any other state, carrying typical debt loads of $20,000 higher than the national average.

“I am focused on ensuring that one’s zip code should not determine one’s opportunty for success. Few policies highlight opportunity gaps more than the impact of student loan debt,” stated Councilmember Christina Henderson. “Nearly 1 in 4 District residents over the age of 24 bear the burden of student loan debt. The burden of student debt affects District residents’ ability to buy homes, start families, and save for retirement. The District also faces broader challenges attracting and retaining public service workers like teachers, public interest attorneys, and other government experts who often take on high levels of student loan debt, with comparably lower levels of pay.”

Since 2014, more than twelve states have passed legislation to establish a Student Loan Borrower Bill of Rights. Over half of these states are in the process of strengethening protections for their student loan borrowers, similar to this bill introduced today.

“While some students have the privilege of college savings, funded by family members – those who don’t, often begin their careers saddled with tens of thousands or even hundreds of thousands of dollars in debt that they’ll spend decades working off,” said Councilmember Brianne K. Nadeau. “With today’s introduction of the Student Loan Borrower Bill of Rights Enhancement Act, we will strengthen the rights of borrowers in a number of circumstances and by moving the Ombudsperson to the Office of the Attorney General, ensure borrowers have the strongest protection possible against bad actors.”

The following protections are just a few of the necessary protections The New Student Loan Borrower Bill of Rights will implement:

• Adding affirmative protections for student loan borrowers. This bill grants additional protections to student loan borrowers in the District, including: ensuring borrowers receive answers to inquiries submitted to their servicers, providing notice of loans that are transferred or sold to another servicer, improving avenues for cosigner release, and discharging debt for total and permanent disability.
• Prohibiting unfair, deceptive, or abusive acts and practices. The District already prohibits debt collectors, auto lenders, and other consumer finance companies from misleading, deceiving, or causing harm to consumers. This legislation expands the same protections to student loan servicers operating in the District.
• Adding a private right of action. This legislation incorporates the private right of action offered under existing DC consumer protection law, extending the same right to relief for student loan borrowers.

The New Student Loan Borrower Bill of Rights was co-introduced by: Councilmembers Brianne Nadeau, Charles Allen, Janeese Lewis George, Brooke Pinto, Elissa Silvernman, Mary Cheh, Robert White and Anita Bonds.

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