Should Congress allow joint consolidation loan borrowers to split up their loans?

This bill has Passed both chambers of Congress
Bill Summary

This bill allows two borrowers who had received joint consolidation loans for their federal student loan debt to sever their loans into two separate loans through a joint application. Additionally, if a borrower is facing domestic or economic abuse from the other borrower or cannot access the other borrower’s loan information, the borrower may apply to sever the loans individually. This bill aims to help borrowers who were stuck paying for the loans of their ex-spouses and domestic abusers. Sponsor: Senator Mark R. Warner (Democrat, Virginia)
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Opponents say

•     "When a borrower is trying to remove themselves from an abusive relationship, he or she can apply without the spouse's permission to have the loan separated. If the loan is separated, the bill would allow for the entire balance to be given to the other spouse. This creates the potential for further abuse of the very individuals we say we want to protect, as a potentially violent former spouse could easily take advantage of the system. I do believe there are better ways to accomplish this goal and Republicans are ready to work and help these individuals

address their needs in an expedient manner, but I don't think S. 1098 is that. We owe it to the victims of abuse to have a straightforward and efficient process to get help and we owe it to the

taxpayers to protect their tax dollars." Source: Rep. Michael Burgess (Republican, Texas, District 26)


•     "While I and many other Republicans support the intent of S. 1098, the Joint Consolidation Loan Separation Act, the legislation delays support for borrowers who need assistance immediately, cedes more control to the Education Secretary, and fails to protect taxpayers. For these reasons, Republicans hope to offer an amendment that will help borrowers who need to separate their loans urgently, whether it be because of divorce or abuse without creating a bureaucratic mess or expanding the federal government's foothold on student loans. Though one of the purported goals of S. 1098 is to help borrowers stuck in a joint consolidated loan with an abusive spouse, the bill in its current form could end up doing the opposite." Source: Rep. Virginia Foxx (Republican, North Carolina, District 5)

Proponents say

•     "The Senate passage of this commonsense legislation is a huge step for survivors of domestic violence and financial abuse who have spent decades fighting for their financial freedom. By finally allowing individuals to sever their joint consolidation loans, this bill will provide needed respite to vulnerable individuals who are being unfairly held responsible for the debt of a former partner. I urge my House colleagues to act with urgency and send this bill to the President’s desk as soon as possible." Source: Sen. Mark R. Warner (Democrat, Virginia)  


•     "While the authority to originate joint consolidation loans ended in 2006, borrowers with these loans were given no way to disentangle their debts, even in the event of divorce, economic abuse, or unresponsiveness from a former spouse. S. 1098 would allow two borrowers with a joint consolidation loan to jointly submit an application to the Department of Education to separate their consolidated loan into two separate loans. The loans would be split proportionately based on the original loan amounts. This bill would also allow survivors of domestic violence or economic abuse or borrowers who are unable to reach the other borrower to submit an individual application to separate their portion of the joint consolidation loan. The Administration urges the House to pass S. 1098, the Joint Consolidation Loan Separation Act, and send it to the President, to fix one part of the student loan program and provide this critical support to borrowers with joint consolidation loans." Source: Executive Office of the President