In a letter obtained by The Lever, Sen. Elizabeth Warren demands the administration “overhaul the student loan system and ensure that bankruptcy relief is a viable option.”
By Julia Rock and David Sirota, The Lever
Just days after President Joe Biden announced student debt cancellation, his administration is under fire for continuing to try to deny bankruptcy protections to the most beleaguered debtors.
Earlier this year, The Lever broke the news that contrary to Biden’s campaign pledge, his administration officials have been fighting student debtors in bankruptcy court and appealing rulings that erase or reduce borrowers’ student debts. After a public outcry, Biden’s Justice Department said it would review its policy on such cases, but hasn’t yet announced any changes.
Now, Sen. Elizabeth Warren (D-Mass.) is demanding answers about the Justice Department’s legal posture.
“I am writing today to follow up on my previous inquiry regarding DOJ’s work to update guidance on how it handles undue hardship claims by student borrowers in bankruptcy proceedings,” she wrote in a letter sent today to Attorney General Merrick Garland and obtained by The Lever. “To support the administration’s efforts to overhaul the student loan system and ensure that bankruptcy relief is a viable option for borrowers in severe financial straits, it is critical that you issue and implement this updated guidance without delay.”
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