June 23, 2014

Senate Finance hearing today on student loan debt

June 24, 2014 – Witnesses from Treasury and the Tax Foundation, among others, are slated to testify before the Senate Finance Committee today on what role the tax system should play in student debt.

Both the Senate and House have focused lately on rising student debt and the cost of tuition, and an effort to pave the way for action on S. 2432, a student loan refinancing bill introduced by Sen. Elizabeth Warren, D-Mass., failed to advance. Warren's legislation would allow current holders of private student loan debt to refinance through a government program at the lower interest rate available to students taking out new loans under last year's Bipartisan Student Loan Certainty Act.

Last week, CFPB Director Richard Cordray raised concerns about the rising cost of tuition, and suggested that educational institutions review its impact, during a House Financial Services Committee hearing on the bureau's semiannual report.

NAFCU, which is monitoring these discussions, remains opposed to any move that would allow student loans to be discharged through the bankruptcy process.

Today's Senate Finance Committee hearing will also include testimony from a high school graduate and a representative from Loudoun Academy of Science in Sterling, Va. The hearing is scheduled to begin at 10 a.m. Eastern.