Democrats in the Connecticut legislature are raising concerns on behalf of student borrowers in the state after the federal Department of Education said last week it would resume collections on loans currently in default.
On Monday, Democratic Reps. Corey Paris of Stamford, Eleni Kavros DeGraw of Avon, Gary Turco of Newington and Manny Sanchez of New Britain, held a press conference at the Legislative Office Building in Hartford, where they denounced the Trump administration’s plans and called for more state funding to help beleaguered borrowers.
“The fact that the federal government has made this decision is going to harm families across the nation and especially in Connecticut,” Kavros DeGraw said.
The Office of Federal Student Aid plans to resume collecting defaulted loans on May 5, ending a five-year pause that began during the COVID-19 pandemic and was extended several times since. Tax refunds and other federal benefits could be withheld from borrowers as soon as next month, and some could see their wages garnished by up to 15%.
The lawmakers at Monday’s event said that could put people already facing financial hardship in an even more difficult situation, and they said the state needs to increase assistance to students seeking higher education.
“It is time for us to wake up and realize that the time is now,” Turco said. “We are looking to continue our current student loan reimbursement program. We also want to look for more funding from the budget to provide relief,” he said.
In an emailed statement, Senate Minority Leader Stephen Harding, R-Brookfield, warned that more state support for student borrowers could mean breaking the state’s fiscal guardrails. “That means they want to raise your state taxes,” he said.
“Ever notice how we never see CT Democrats hold daily news conferences on cutting state government waste and actually lowering our cost of living?’ Harding added.
Federal officials say the move to collect defaulted student loans is intended to protect taxpayers and fix a system they say was confusing for borrowers.
“American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,” Secretary of Education Linda McMahon said in a statement released by her office last week. “The Biden Administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear.”
Students and teachers at Monday’s press conference expressed concern about the personal financial implications the policy could have.
Christina Barmon, a sociology professor at Central Connecticut State University, said, “It is difficult to console students when I can’t afford to pay either. I am still paying off debts. Students are expected to pick up the slack.”
Syafira Azzahra, a senior at Central, shared her concerns about paying off loans once she graduates. “It is impossible for us to live within our means and simultaneously worry about our debt,” she said.
Last Wednesday, President Donald J. Trump issued a related executive order directing reforms to the higher education accreditation system. The order says accrediting bodies that grant student loans and Pell Grants are biased because of their focus on diversity, equity and inclusion. The order called for establishing new accreditors that are solely merit-based and don’t factor race or gender into decisions.
Democratic leaders of the Connecticut Senate issued a joint statement last Thursday on the order expressing their disapproval. “Through attacking accreditors, Donald Trump continues his witch hunt to quell educational freedom in favor of advancing his own political agenda,” Senate President Pro Tem Martin M. Looney, Senate Majority Leader Bob Duff and Sen. Derek Slap said in the statement.