Gottheimer Calls for Solutions to Solve the Student Loan Debt Crisis

Sep 10, 2019

Forty-seven percent of 18-34 year olds in New Jersey are living with their parents — the most in the nation - Gottheimer Fights to Combat $1.5 Trillion Student Debt Crisis to Boost Homeownership, Lower Debt, Protect Borrowers

Today, Tuesday, September 10th, 2019, U.S. Congressman Josh Gottheimer (NJ-5), during a Financial Services Committee hearing with student loan experts, called for solutions to greater protect student borrowers, to hold student loan servicers accountable, and to tackle the $1.5 trillion student debt crisis plaguing our nation.

Today’s hearing comes as more and more Americans are defaulting on their loans, creating long-term financial consequences for both recent graduates and our national economy. In New Jersey, 61% of students graduated with student loan debt in 2017, and 47% of 18-34 year olds in New Jersey are living with their parents — the most in the nation. The Federal Reserve stated recently that roughly 20% of the decline in homeownership among young adults can be attributed to the hefty increase of student loan debt.

“Homeownership can be an incredible way to achieve the American dream, and I’m worried that not enough households are building wealth through homeownership due to increasing student debt. By forcing students to start paying back their loans right after graduation, we are setting our graduates up for failure. A ten-year repayment plan is the most common student loan repayment plan, but it usually takes several years at least after graduation to reach a point where a degree is paying financial dividends,” said Congressman Josh Gottheimer (NJ-5). “Finally, student loan servicers are increasingly omitting or misrepresenting information. We need to be creating clear rules of the road to better protect our student borrowers.”

The Financial Services Committee has put forth a bill that would direct the U.S. Department of Housing and Urban Development to work with the Consumer Financial Protection Bureau and Federal Housing Finance Agency to review the barriers to homeownership for borrowers with student loan debt and make recommendations for policy changes that will responsibly reduce or eliminate these hurdles.


Recent Posts

Dec 4, 2023

RELEASE: Gottheimer Calls On Rutgers University to Protect Students and Remove Antisemitic, Anti-Israel Speakers From December 7 Event

NORTH JERSEY — Today, December 4, 2023, U.S. Congressman Josh Gottheimer (NJ-5) wrote to Rutgers University President Jonathan Holloway, calling on him to take action in response to the University’s inclusion of antisemitic, anti-Israel, and hate-filled upcoming guest speakers Marc Lamont Hill and Nick Estes at a Rutgers-sponsored event on December 7 entitled “Race, Liberation, and […]

Dec 4, 2023

RELEASE: Gottheimer, Lawler Stand with NYC Restaurant Owner Against NY’s $15/Day Congestion Tax

Above: Gottheimer with Rep. Lawler and Julio Pena, co-owner of NYC restaurant Il Posto Accanto. NEW YORK, NY — Today, December 4, 2023, U.S. Congressmen Josh Gottheimer (NJ-5) and Mike Lawler (NY-17) joined Julio Pena, owner of restaurant Il Posto Accanto, to highlight the terrible impact New York’s proposed $15-a-day Congestion Tax will have on small […]

Nov 30, 2023

RELEASE: Gottheimer Statement on New York’s Congestion Tax

NORTH JERSEY — Today, November 29, 2023, U.S. Congressman Josh Gottheimer (NJ-5) released the following statement: “As advertised, New York is officially sticking it to Jersey families with their commuter-crushing Congestion Tax. On top of the existing tolls, it’ll be 15 bucks every day to go into the city with no discounts at the GW Bridge […]