Golden State Today

California Attorney General Rob Bonta, in collaboration with a coalition of 19 attorneys general, has sent a letter to the U.S. Department of Education (ED) advocating for expanded debt relief for federal student loan borrowers. The proposed regulations aim to alleviate the burden on borrowers who currently hold over $1.7 trillion in federal student loan debt, including 3.8 million Californians who owe more than $142 billion.

Attorney General Bonta emphasized the necessity of student loans for many students, particularly those from low-income backgrounds and students of color. He pointed out that policy failures and misconduct by student loan servicers have left many borrowers struggling to navigate complex loan repayment and forgiveness programs. He stated, “These new regulations will expand relief to more borrowers, I urge the Department of Education to very quickly apply relief.”

The letter supports the proposed federal policy which would waive repayment for certain categories of borrowers. These include those whose debt has grown beyond their original amounts owed, those who have been struggling under the weight of student loan debt for decades, and those who attended schools that failed to provide sufficient value.

The attorneys general are urging ED to implement this relief promptly to help alleviate the financial and psychological burdens associated with long-term student loan debt. They argue that these burdens disproportionately affect low-income borrowers and borrowers of color due to racial wealth disparities.

In addition to advocating for expanded debt relief, Attorney General Bonta has been active in protecting and obtaining meaningful relief for student loan borrowers. His past actions include submitting a letter raising concerns about resuming federal student loan payments, filing an amicus brief supporting plans to discharge between $10,000 and $20,000 in federal student loan debt for certain lower-income borrowers, and announcing a multistate settlement against Navient over allegations of misconduct in servicing and collecting federal student loans.