U.S. Senator Gary Peters Says Defaulters on Student Loans Deserve a Second Chance

May 13, 2015

U.S. Capitol - file photo
Credit iStock/Svetlana Larina

U.S. Senator Gary Peters says students who default on a student loan deserve a chance to clear their credit rating.

Peters has proposed legislation that would  allow students to make nine months of payments to fix their credit score. The Senator told WMUK's Gordon Evans that it's an option already available for students with federal loans. Peters says most defaults on student loans come soon after college when students are looking for work or in a job that doesn't pay well. But he says it stays on their credit report forever. 

The legislation is similar to bills proposed when Peters was a member of the U.S. House. He says that this legislation is bi-partisan and has the support of lenders. Peters says there is no timeline for beginning hearings on the proposal.