CFC supports equal protection for private student loan holders (SB 16)
If a borrower defaults on a private student loan, a creditor can garnish up to 25% of that borrower’s income. If a borrower defaults on a federal student loan, the maximum garnishment is 15%. SB 16 (Wieckowski) will ensure that the maximum garnishment is the same for both federal and private student loan borrowers in default. There is no rational reason to treat borrowers with private loans differently than those with federal loans.
4/17/17 Passed Assembly on a Floor vote of 28-12.
3/18/17 Passed Senate Judiciary committee 5-2.