B95327A30495DB708725847E006D0DF8 Hearing Summary

Tariq Habash, Head of Investigations, Student Borrower Protection Center, introduced himself to the committee and distributed his presentation to the committee.  The presentation can be accessed here: http://leg.colorado.gov/sites/default/files/images/lcs/sbpc_co_9.23.19.pdf.  He discussed the current student loan market, emphasizing that the overall amount of student loan debt has increased year after year.  He talked about  the current outstanding student loan debt in Colorado, which is about $27.7 billion.  He discussed possible consequences of outstanding student debt, including the inability to purchase a home, and increased likelihood that a borrower will default on his or her loan.  He talked about consequences of defaulting on a student loan and repayment plans available to borrowers. He referenced a program in New York, which provides up to 24 months of federal student loan debt relief to recent graduates.  He also mentioned a program in Maryland that assists people with student loan debt purchase homes.  Mr. Habash discussed for-profit institutions and stated that borrowers tend to struggle to repay student loans from these types of institutions.