[Congressional Record (Bound Edition), Volume 162 (2016), Part 9]
[House]
[Pages 12012-12013]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           STUDENT LOAN DEBT

  The SPEAKER pro tempore. The Chair recognizes the gentlewoman from 
Oregon (Ms. Bonamici) for 5 minutes.
  Ms. BONAMICI. Mr. Speaker, when I traveled around northwest Oregon 
last month, from town hall meetings to the grocery store, I spoke with 
Oregonians about the challenges they are facing and what keeps them up 
at night. Time after time, the conversation turned to the cost of 
higher education.
  It is likely we have all spoken with parents trying to make ends meet 
who can't save for their young children's education and recent 
graduates who are worried about finding jobs that will cover their 
looming student loan payments. But we also hear from too many people 
who are trying to balance their current student loan debt with child 
care, housing, and other expenses. Many are getting by, but 1 month of 
unexpected unemployment or illness could set them back years. 
Unfortunately, for too many, the threat of default is already a 
reality.
  Currently, more than 8 million student loan borrowers are in default 
on their educational debt, and the number is growing. These are 
hardworking Americans--mothers, fathers, veterans, nurses, teachers, 
and young people--who are trying to improve their lives, but have been 
pulled into financial turmoil.
  The 8 million people in default--a group, roughly, twice the size of 
Oregon--are at risk of financial ruin. Their tax refunds and Social 
Security benefits may be withheld. Their wages can be garnished and 
they can face legal action. And with damaged credit, borrowing for a 
home, car, or business, or even renting an apartment can be an 
impossible task.
  What can Congress do for those who are struggling to make their 
student loan payments?

[[Page 12013]]

  The answer is SIMPLE.
  Today I am pleased to introduce legislation with my friend and 
colleague from Pennsylvania, Congressman Ryan Costello. Our bill, the 
Streamlining Income-Driven Manageable Payments on Loans for Education, 
or SIMPLE Act, makes it easier for millions of at-risk student loan 
borrowers to access protections that are already available under the 
law.
  Income-driven repayment plans allow borrowers to make loan payments 
that are based on how much they earn. So, in other words, what they can 
afford. As a result, they are much less likely than other borrowers to 
default on their debt. That is good for the borrower, their families, 
and local economies.
  Unfortunately, too many at-risk borrowers don't know about these 
plans or they are unable to navigate the complicated application for 
enrolling, so they don't receive the benefit of lower payments. In 
fact, 70 percent of borrowers in default from the government's largest 
student loan program, the Direct Loan program, would have qualified for 
lower payments.
  Even if borrowers enroll in income-driven repayment, they must 
complete a burdensome process to update information. In one study, more 
than half of the borrowers did not recertify their income on time. When 
this happens, a borrower's payments can spike and suddenly push the 
borrower toward delinquency and default.
  In short, the government makes it unnecessarily difficult for people 
who are weighed down by student debt to get the help the law already 
affords them.
  Our bipartisan SIMPLE Act streamlines the process and removes 
barriers that prevent borrowers from benefiting from income-driven 
repayment. The bill uses borrowers' existing income data to 
automatically provide at-risk borrowers on the verge of default with 
lower loan payments. The bill provides for automatic updates of 
borrowers' income information each year, so they continue to pay what 
they can afford.
  As college costs continue to rise and more students leave school with 
increasing levels of debt, it is clear that this House needs to act to 
make higher education more affordable for everyone. The SIMPLE Act is 
part of that broader effort. It works by reaching at-risk borrowers, 
simplifying the process to get them into a plan with repayment based on 
income and helping them keep their payments affordable and avoid 
default.
  I thank Mr. Costello for his partnership on this bill and urge all of 
my colleagues to join us in supporting this legislation.

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