Sending Office: Honorable Mary Gay Scanlon
Sent By:
Keanu.Rivera@mail.house.gov

        Request for Cosponsor(s)

Supported by: American Association for Justice (AAJ),
The Institute for College Access and Success (TICAS), National Association for College Admission Counseling (NACAC)¸ and
National Consumer Law Center (NCLC)

Original Cosponsors: Nadler, Davis (Susan), Cicilline

Dear Colleague,

The student debt crisis has left American borrowers with over 1.5 trillion dollars in student loan debt. This crippling burden prevents student borrowers from realizing the full potential of their degrees or participating in our economy. This issue is further
exacerbated by unfair lending practices, such as pre-dispute arbitration clauses and joint-action waivers, in private student loans.

Pre-dispute arbitration clauses, written into loan contracts and offered as a prerequisite for borrowing money, strip away a student’s right to a jury trial if there is a legal dispute. Similarly, class-action waivers, often coupled with forced arbitration
clauses, stop students from banding together to take on lenders for fraudulent or unfair lending practices. Students who need private loans to attend school face the unfortunate choice between waiving their rights or a getting a degree.

The use of pre-dispute arbitration clauses in conjunction with pre-dispute class action waivers are common amongst private student loan contracts. A recent study from the Consumer Financial Protection Bureau found that 86% of the private student loans being
issued contain these clauses.

H.R. 3764 the Justice for Student Borrowers Act, would ensure that students no longer have to make this choice. Our bill bans the use of pre-dispute arbitration clauses and pre-dispute joint-action waivers in private student loans.

This bill is endorsed by American Association for Justice (AAJ),
The Institute for College Access and Success (TICAS), National Association for College Admission Counseling (NACAC)¸ and
National Consumer Law Center (NCLC)
.

Please join my colleagues, Chairman Jerry Nadler, Chairwoman Susan Davis, Chairman David Cicilline, and me in fighting for fairer lending practices by cosponsoring the Justice for Student Borrowers Act.

If you have any additional questions or would like to sign on, please contact Keanu Reynolds-Rivera in my office at
Keanu.Rivera@mail.house.gov or (253) 802-6065.

Sincerely,

 

Mary Gay Scanlon

Member of Congress

Related Legislative Issues

Selected legislative information: Consumer Affairs, Education, Finance, Judiciary

Related Bill Information

Bill Type: H.R.
Bill Type: 3764
Special Note:

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