The American Bankers Association wrote to Senate Armed Services Committee Chairman Jim Inhofe (R-Okla.) today to oppose two private student loan amendments included in the House version of the National Defense Authorization Act that the association noted were “financially infeasible and could lead banks to exit the private student loan market.”
Amendment number 843, offered by Rep. Alma Adams (D-N.C.), would allow a bank’s private student loan borrowers to stop making payments until Sept. 30, 2021. Amendment number 840, offered by Rep. Madeleine Dean (D-Pa.) would provide authorization for the treasury secretary to provide every private student loan borrower with a lump sum payment of $10,000 or the balance of their loan (whichever is less) without requiring documentation of need.
“If enacted, these non-defense, non-germane provisions would seriously and adversely change the private student loan marketplace and limit the availability of non-government backed credit available to students and their families seeking to finance post-secondary education,” ABA said. “We urge you to reject these amendments during the House-Senate conference.”