Assemblyman Plans to Stop Student Loan Wage Garnishments
Apply for a Loan
Secured with SHA-256 Encryption
UPDATED: Feb 19, 2013
Advertiser Disclosure: We strive to help you make confident loan decisions. Comparison shopping should be easy. We are not affiliated with any one loan provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about loans. Our goal is to be an objective, third-party resource for everything loan related. We update our site regularly, and all content is reviewed by experts.
One state assemblyman in California has had enough of lenders plaguing private college loan borrowers. Unlike most everyone else that complains about college debt, he actually has the power to do something about it too.
Assemblyman Bob Wieckowski plans to push forward AB 233, a bill to prohibit lenders from garnishing the wages of student borrowers. It is part of his “Student Bill of Rights” package that will also require entrance and exit college loan counseling for all private student loans. Additionally, the assemblyman introduced Joint Resolution 11, which urges Congress to change bankruptcy laws in order to allow private loan debt to be discharged in bankruptcy proceedings.
Assemblyman Wieckowski told loans.org that the Student Bill of Rights package would feature two components. One would educate prospective borrowers before they put pen to paper and agree to take on debt. The other would help assist those borrowers who already find themselves in debt or who are already having their wages garnished due to lack of payment.
According to a press release from the Assemblyman on the California State Assembly Democratic Caucus website, college loan borrowers can have up to 25 percent of their income garnished; a threatening prospect in an already weak economy with stagnant salary growth.
“I am targeting private student loans because they are the riskiest for students,” said Wieckowski.
He continued to explain that private student loan borrowers lacked the safeguards of federal student loans. Without such features as repayment plans, forbearance, death and liability discharges, and unemployment deferments, many private loan borrowers end up seeing their wages garnished.
The assemblyman is not naïve enough to believe that the private college loan industry will not voice their opposition to his bill.
“I know from experience that there are some powerful special interests involved in higher education and lending. But I am optimistic that my colleagues, aware that many of their constituents are saddled with students loans that they cannot discharge, will be supportive of this package,” said Wieckowski.
Not limiting the scope of his legislative plans to just college students, Wieckowski envisions that financial education can begin earlier in life; perhaps even alongside introductory math classes in grades K-12.
“I am a bankruptcy attorney and I know we need to do more to give students a strong foundation in financial literacy. They need a better understanding of budgeting, savings, credit, identity theft, how to plan and pay for college, and overall personal finance,” said Wieckowski.
In March, the assemblyman will hold a rally at the state Capitol alongside student organizations and lending reform activists.