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student debt

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Statement of Councilmember Grosso on indictment of former Virginia clergyman

For Immediate Release:
March 16, 2020
 
Contact:
Matthew Nocella, 202.286.1987 - mnocella@dccouncil.us

Statement of Councilmember Grosso on indictment of former Virginia clergyman

Washington, D.C. – The following is a statement from Councilmember David Grosso (I-At Large) regarding the Virginia Attorney General's announcement of an indictment against a former clergyman for carnal knowledge of a minor

“Last week, the Commonwealth of Virginia indicted and detained Mr. Scott Asalone for criminal sexual abuse of a minor that occurred in the 1980s while he was a Catholic priest assigned to Saint Francis de Sales Church in Purcellville, VA. The minor he assaulted was me.

“This occurred during a very difficult time of my life. Since then, I have been working through the negative impact of this abuse on my life.  With the loving support of my wife Serra and my family, I am proud of the progress I have made.

“Though the deep scars remain, I largely believed this incident was behind me, especially after I underwent intensive therapy in the 1990s. However, state authorities in Virginia recently obtained the Catholic Diocese of Arlington’s internal file on my case. Consequently, law enforcement contacted me regarding the case several times over the past year. 

“This new investigation into a crime the Diocese attempted to bury for decades has ripped open old wounds, stirred dark memories and caused fresh trauma as I have been forced vividly to relive the tragic events of my childhood.  I have again received therapy and made difficult decisions to advance my recovery. My conclusion not to seek another term as a Councilmember was heavily influenced by this new case. State authorities asked me to provide testimony to the grand jury in Fairfax, and I did so, only to prevent Mr. Asalone from ever hurting another child.

“Evidence I presented, including my testimony, resulted in the issuance of a criminal indictment on one count of carnal knowledge of a minor, a class IV felony. I understand that Mr. Asalone was taken into custody on Saturday in New Jersey and is in the process of being extradited to Virginia.

“I am making this statement because I understand the tremendous burden that victims of sexual assault and abuse carry throughout their lives. As I did many years ago, we all must find the courage to come forward, tell our stories, and seek justice and accountability from the perpetrator, as well as the churches and other institutions that have hidden or excused their behavior.

“I greatly appreciate the work of Virginia Attorney General Mark Herring, law enforcement officers, and prosecutors. I believe the system can and will work to bring justice in mine and many other cases.  As a legislator, I’ve had the additional responsibility of ensuring that victims have every available option open to them to pursue justice, including ending the statute of limitations for sexual abuse in the District of Columbia. 

“Most importantly, victims of sexual assault and abuse should know that there are resources in the District of Columbia to help you.  I encourage you to contact the DC Victim Hotline at 1.844.4HELPDC (1.844.443.5732) or online at www.DCvictim.org/chat. For more information and resources on the two-year window to file previously expired civil sexual abuse cases in DC, visit: http://bit.ly/2yearwindow.”

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Student Loan Borrower Bill of Rights Amendment Act of 2020

Student Loan Borrower Bill of Rights Act of 2020

Introduced: March 3, 2020

Co-introducers: Councilmembers Anita Bonds, Robert White, Elissa Silverman, Brianne Nadeau and Mary Cheh

BILL TEXT | PRESS RELEASE

Summary: To amend the Department of Insurance and Securities Regulation Establishment Act of 1996 to prevent abusive acts or practices on the part of student loan servicers, to clarify that student loan servicers under contract with the United States Department of Education shall automatically be issued a limited student loan servicing license upon meeting certain criteria; to clarify denials of applications for approval; to proscribe prohibited conduct on the part of student loan servicers; to assign affirmative duties to student loan servicers; to assign the Attorney General of the District of Columbia the power to enforce the Act; to transfer the Student Loan Ombudsperson from the Department of Insurance, Securities and Banking to the Office of the Attorney General for the District of Columbia; and require the creation of a Student Loan Borrower Bill of Rights by October 1, 2021.

Councilmember Grosso's Introduction Statement:

Thank you Mr. Chairman.

Today, along with Councilmembers Bonds, Cheh, Nadeau, and Silverman, I am introducing the Student Loan Borrower Bill of Rights Amendment Act of 2020.

As we all know, having a college education is an important requirement for entry into many jobs and professions with students and their families assuming a financial burden in exchange for a successful future.

To ease the burden, student loans make college accessible to students coming from all income levels, allowing them to pursue their educational endeavors—but at a cost.

On average, repayment rates often negatively affect first-generation college students, along with Black and Latinx students who are more likely to fall behind on loan payments and are less likely to pay off their student loans over time.

Student loan debt is at a crisis level with an estimated 1.5 trillion dollars owed in student loan debt nationally.

In the District of Columbia, the average student loan balance is approximately $56,000 while the national rate for the average student loan balance is approximately $37,000.

The Student Loan Borrower Bill of Rights Amendment Act of 2020 will ensure that student loan borrowers in the District of Columbia are protected from abusive acts or practices on the part of lenders.

This bill establishes protections including a Student Loans Bill of Rights and providing borrowers with affirmative protections when submitting written inquiries to their servicers, when splitting single payments across multiple loans, and when their loans are sold or transferred to another servicer.

D.C. Law already prohibits debt collectors, auto lenders, and other loan-based companies from misleading or causing harm to borrowers, and with this bill in place, student loans lenders would be no different.

The proposed bill would also move the Student Loan Ombudsperson from the Department of Insurance, Securities and Banking to the Office of the Attorney General to streamline the complaint referral process when enforcement action is needed while also capitalizing on the existing subject matter expertise of OAG staff.

The Student Loan Ombudsperson assists with the regulation of student loan services, conducts important outreach to assist D.C. residents who are preparing for college and who have already acquired student loan debt.

Finally, this bill provides for a private right of action when borrowers believe they have been victims of abusive acts and violations of the law on the part of student loan servicers.

Pursuing an education using the financial help of a loan provider should not be coupled with the fear that one will not be able to pay or be disadvantaged in the payment process.

I would like to thank the Student Borrower Protection Center for their continued advocacy and partnership with my office on this and many other initiatives to protect D.C.’s student loan borrowers.

Thank you, and I welcome any co-sponsors. 

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Councilmember Grosso introduces bill to strengthen protections for student loan borrowers

For Immediate Release:
March 3, 2020
 
Contact:
Matthew Nocella, 202.724.8105 - mnocella@dccouncil.us

Councilmember Grosso introduces bill to strengthen protections for student loan borrowers

Washington, D.C. – Today, Councilmember David Grosso introduced legislation to protect student loan borrowers from abusive practices by lenders and improve the work of the District’s Student Loan Ombudsperson, which Grosso created through legislation in 2017.

 “A college education is an important requirement for entry into many jobs and professions, and student loans make college accessible to students from all income levels–but at a cost,” said Grosso. “On average, repayment rates often negatively affect first-generation college students, along with Black and Latinx students who are more likely to fall behind on loan payments and are less likely to pay off their student loans over time. D.C. needs to act to ensure our residents who carry student loan debt are protected.”

Student loan debt has reached crisis level in the United States, with $1.5 trillion worth of debt already accrued nationally. In the District, the average student loan balance is approximately $56,000 while the national rate for the average student borrower is approximately $37,000 of student debt. Due to the gradual increase of school tuition rates, the rise of student loan borrowers is also set to increase, leaving vulnerable populations susceptible to these lenders.

The Student Loan Borrower Bill of Rights Amendment Act of 2020 establishes a Student Loan Bill of Rights that provides borrowers with affirmative protections when submitting written inquiries to their servicers, when splitting single payments across multiple loans, and when their loans are sold or transferred to another servicer. It also prohibits unfair, deceptive, or abusive acts and practices by student loan lenders.

“Because the District of Columbia already prohibits debt collectors, auto lenders, and other loan-based companies from misleading or causing harm to borrowers, this bill would hold student loans lenders accountable to the same standards,” said Grosso.

Grosso also hopes to improve the effectiveness of the District’s Student Loan Ombudsperson by moving it from the Department of Insurance, Securities and Banking to the Office of the Attorney General.

 “The Attorney General’s office has been providing many of the same functions of the student loan ombudsperson, including handling complaints, creating and distributing student loan repayment resources, and engaging in community outreach. Moving the student loan ombudsperson to the AG’s office would streamline the complaint referral process when enforcement action is needed while also capitalizing on the existing subject matter expertise of the staff,” said Grosso.

 Attorney General Karl A. Racine agrees.

 “Nearly a quarter of District residents are under the strain of student loan debt, with a median balance that is 44 percent higher than the national average,” said Attorney General Racine. “Former students struggling to pay off their debt are acutely vulnerable to predatory student loan servicers that make it harder to access debt repayment options—and drive too many residents, especially those in communities East of the River, into delinquency. The Office of the Attorney General strongly supports Councilmember Grosso’s proposal to strengthen protections for student borrowers, and we take this opportunity to remind debt collectors and servicers that our lawyers are ready to defend residents against unlawful practices.”

 The Student Borrower Protection Center, nonprofit organization focused on alleviating the burden of student debt for millions of Americans, also endorsed the legislation.

"The District of Columbia is ground zero in the student loan crisis. From breakdowns that deny teachers and public service workers their right to relief, to the enormous disparities devastating borrowers of color, predatory student loan companies are wreaking havoc on the financial lives of some of the most vulnerable residents,” said Seth Frotman, the organization’s Executive Director and former Consumer Financial Protection Bureau Student Loan Ombudsman. “As the Trump Administration chooses to stand with unscrupulous student loan companies, it is more important than ever that the District pass critical new protections for its residents.”

“I would like to thank the Student Borrower Protection Center for their continued advocacy and partnership with my office on this and many other initiatives to protect D.C.’s student loan borrowers, Attorney General Karl Racine for his support and his office’s consumer protection work, and Councilmembers Anita Bonds, Elissa Silverman, Robert White, Brianne Nadeau, and Mary for joining me as co-introducers of this legislation,” said Grosso.

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Grosso joins state legislators to preserve state protections for student borrowers

Councilmember Grosso today signed on to a letter with 20 state legislators from 13 other states urging U.S. Education Secretary Betsy DeVos to withdraw her memo pre-empting state laws meant to protect student loan borrowers, such as Councilmember Grosso's Student Loan Ombudsman Establishment and Servicing Regulation law.

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Grosso sends letter to Mayor Bowser outlining budget priorities for FY2019

Today, Councilmember David Grosso, chairperson of the Committee on Education, sent a letter to Mayor Bowser outlining his budget priorities for the Mayor to consider for inclusion in her FY2019 budget proposal.

Ensuring that our students are in the best position to succeed remains Grosso's number one priority as the Chairperson of the Committee on Education.  Fully supporting our students, teachers, and school communities means providing the necessary resources.  For FY2019, Grosso asked the Mayor to:

1.       Meet the non-academic needs of our students through increased investment in the Department of Behavioral Health’s School-Based Mental Health program.

2.      Invest in the successful early literacy intervention program that gets students at or above reading level by third grade.

3.       Give our teachers the tools to educate all our students by funding school-based special education teacher training.

4.      Support the expansion of vital out-of-school time programs with increased funding for the Office of Out of School Time and Youth Outcomes.

5.      Continue equitable investment in community based organizations who are providing care to at-risk pre-kindergarten children.

6.      Aid child care providers by raising the subsidy reimbursement rates to more closely align with the cost of care.

Additionally, Grosso asked the Mayor to support funding for many of his policy priorities that have become law in the past few years:

1.       Provide financial stability for workers caring for themselves or their family by investing fully in the implementation of the Universal Paid Leave Amendment Act of 2016.

2.      Assist residents managing their educational financing by funding a separate student loan ombudsman at the Department of Insurance, Securities and Banking.

3.       Support the newly established D.C. State Athletics Commission with funding for two new full-time position.

4.      Provide equitable access to vital identity documents by funding fee exemptions for low-income residents.

5.      Remove the influence of big dollar donors and promote equitable participation in our local elections by fully funding the Fair Elections Amendment Act of 2017

You can read the full letter to Mayor Bowser below.

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Grosso introduces legislation to aid residents’ student loan repayments

For Immediate Release:
October 3, 2017
 
Contact:
Matthew Nocella, 202.724.8105 - mnocella@dccouncil.us

Grosso introduces legislation to aid residents’ student loan repayments

Washington, D.C. – Councilmember David Grosso (I-At Large) today continued his push to address the looming student debt crisis by introducing legislation to assist borrowers in repaying their federal student loans.

“While we have taken a preliminary step to tackle student debt with the creation of a student loan ombudsman, we need to do more to invest in our workforce and ensure that attending college is not a financial drain on individuals and families who call D.C. home,” said Councilmember Grosso.

The Student Loan Debt Forgiveness Act of 2017 establishes a student loan forgiveness program for D.C. residents who are currently enrolled in a federal income-driven repayment plan. Qualified applicants would be eligible to receive an award equal to 100% of their monthly payment for up to 60 months if they were enrolled in a post-secondary institution after January 1, 2016.

“Growing student debt presents a serious challenge for our residents and local economy, creating a burden that follows them and stifles every aspect of their lives: buying a house, starting a business, saving for retirement, and furthering their education,” Grosso said. “What is worse is that our communities of color are being hardest hit by student debt.”

The District of Columbia maintains the highest concentration of student debtors in the country, according the U.S. Department of Education.  Over 112,000 D.C. residents collectively owe $5.6 billion in federal student loans.  Residents in the East End of D.C. carry twice as much debt and are three times more likely to be at least nine months behind on their loan payments as their neighbors in other parts of the city.

“This legislation, along with the work of the city’s new student loan ombudsman, could mean the difference between success and default for our residents,” said Councilmember Grosso.

Last year, the Council passed Grosso’s Student Loan Ombudsman Establishment and Servicing Regulation Act of 2016. It established a student loan ombudsman in the Department of Insurance, Securities and Banking empowered to establish licensing requirements for student loan servicers in the city.  The office is also charged with informing D.C. residents about their options when seeking student loans and when working to repay them.

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Student Loan Debt Forgiveness Act of 2017

Student Loan Debt Forgiveness Act of 2017 

Introduced: October 3, 2017

Co-introducers: Councilmembers Elissa Silverman, Brianne K. Nadeau, and Trayon White

FACT SHEET | BILL TEXT

Summary: To establish a student loan debt forgiveness program for residents of the District.

Councilmember Grosso's Introduction Statement:

Currently, the national student debt exceeds $1.3 trillion, surpassing all other types of non-mortgage debt.

As one of the most educated cities in the U.S., the District of Columbia is home to several reputable colleges and universities; so it should come as little surprise that our residents experience significant student indebtedness.

In fact, the District of Columbia maintains the highest concentration of student debtors in the country.  Just last week, the U.S. Department of Education released state-specific information on student debt, for the first time ever.  According to their analysis, D.C. residents owe $5.6 billion dollars in federal student loans with 112,200 student loan borrowers in our city.

Repayment of this type of debt is challenging generally, but it is especially difficult for students who attend community college or for-profit colleges for some time, but never earn a degree or certificate.

Making matters worse, here in D.C. our communities of color are being hardest hit by student debt, as residents East of the River are three times more likely to be at least 9 months behind on their loan payments, than residents in the rest of the city who carry twice as much debt.

The negative impact of educational borrowing on a borrower’s potential wealth accumulation cannot be overstated. Carrying a high amount of student debt can severely limit an individual’s purchasing power and can have a detrimental effect on the greater economy.  Increased student debt impairs home sales, decreases retirement security, stifles entrepreneurship and discourages individuals from seeking careers that require additional education.

Last year, we created a Student Loan Ombudsman position within the Department of Insurance, Securities and Banking and required student loan servicers to become licensed to ensure that servicers are responsive, acting according to clear standards and not creating obstacles to repayment and driving borrowers into default.

While this was certainly a critical step and I am thrilled that Dr. Charles Burt has been hired as the Student Loan Ombudsman, we need to do more to ensure that attending college is not a financial drain on individuals and families, especially families that may have little to no experience with college.

That is why today, along with my colleagues Brianne Nadeau, Trayon White and Elissa Silverman, I am introducing the Student Loan Debt Forgiveness Act of 2017.

This bill establishes a student loan forgiveness program for D.C. residents who are currently enrolled in a federal income-driven repayment plan and meet other eligibility guidelines.

The program will be administered by the Office of the State Superintendent for Education and qualified applicants would be eligible to receive an award equal to 100% of their monthly payment for up to 60 months.

Passage of this legislation, coupled with the work of the Student Loan Ombudsman, ensures that we are protecting our student loan borrowers to the fullest extent and providing them additional opportunities for success.

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Grosso concerned over implementation of student loan ombudsman

Councilmember Grosso sent a letter to the Department of Insurance, Securities, and Banking (DISB) raising concerns over the dual-expertise qualification needed for the District of Columbia's Student Loan Ombudsman that could delay hiring of the vital position.

Legislation introduced by Councilmember Grosso and passed by the Council last year created an ombudsman in DISB empowered to establish licensing requirements for student loan servicers in the city.  They are also charged with informing D.C. residents about their options when seeking student loans and when working to repay them.

DISB advertised the position as a "Student Loan and Foreclosure Ombudsman", requiring applicants to have qualifications in both fields, a move that Councilmember Grosso feels will yield no qualified candidates and thus delay the hiring of a student loan ombudsman.

"The District of Columbia, one of the most educated cities in the U.S., is the most indebted jurisdiction when it comes to average federal student loan debt," wrote Grosso. "The 140,000 student loan borrowers residing in D.C. owe an average of $40,885, about 40 percent higher than the national average."

Recent actions by the Trump Administration to halt a planned overhaul to student loan management initiated under President Barack Obama have cast the system into doubt and made the need fir a dedicated student loan ombudsman in D.C. even more important.

"Now more than ever, a dedicated Student Loan Ombudsman is necessary to ensure that our residents will be able to lodge complaints and receive vital educational information as it relates to their student loans.  Further, this role will enable the District of Columbia to take a critical step in protecting student loan borrowers by creating servicer accountability and providing stringent oversight of this industry," Grosso wrote.

Read the councilmember's full letter below.

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