Amendments to Subsection (b) – Consideration of Hardship Factors for

Waiving Federal Student Loans (Submitted by Wisdom Cole)

In consideration of the hardship necessary for waiving federal student loan debts

under Section 30.91, the following amendments are proposed to ensure an

equitable and comprehensive assessment of borrowers' situations, particularly for

Black borrowers and those from historically underserved communities:

1. Racial and Economic Disparities:

o In evaluating the borrower's claim of hardship, the Department shall

explicitly consider the impact of racial and economic disparities that

historically and currently affect the borrower's ability to repay the loan

2. Community and Environmental Factors:

o "Assessment of hardship shall include considerations of the borrower's

geographic location, particularly if residing in economically disadvantaged

areas or regions with a high cost of living, and the impact of such factors on

the borrower's financial stability.

3. Historical Debt Patterns:

o The Department will review historical debt patterns, including the effects of

discriminatory lending practices and disparities in wealth accumulation, to

understand their influence on the borrower's current financial situation and

ability to manage student loan debt.

4. Educational Outcome Disparities:

o In evaluating the sector and level of the institution attended, along with

typical student outcomes, the Department shall analyze how these factors

intersect with race and economic status, recognizing that disparities in

educational opportunities contribute to unequal outcomes.

5. Disability Consideration:

o The definition of disability for the purposes of this assessment will be

broadened to include mental health conditions and other non-visible

disabilities, acknowledging their impact on the borrower's employment

capabilities and financial stability included within any and all disabilities

outlined within the Americans with disabilities act. As well as any and all

disabilities that prohibit major life activities.

6. Legal System Impacts:

o Consideration shall be given to the impacts of the legal system and

incarceration on the borrower's financial circumstances and ability to repay

the loan, with particular attention to the disproportionate effects on Black and

underserved communities.

7. Age and Lifecycle Changes:

o The Department shall adjust its consideration of age to account for lifecycle

changes that may affect older borrowers differently, such as retirement or

transitioning to fixed income, especially in light of racial income disparities.
Amendments to Subsection (b) – Consideration of Hardship Factors for

Waiving Federal Student Loans (Submitted by Wisdom Cole)

8. Public Benefits Eligibility:

o Eligibility for means-tested public benefits will be clarified and expanded

within the criteria to capture a broader range of support programs, ensuring

it reflects financial hardship and includes programs disproportionately

serving Black and underserved communities.

These amendments are designed to ensure that the Department's evaluation of

hardship claims is inclusive, equitable, and reflective of the diverse challenges faced

by borrowers, particularly those from Black and historically underserved

communities.