Bipartisan, bicameral legislation protects domestic violence survivors from financial abuse
Washington, DC– Representative Mikie Sherrill (NJ-11) voted for the Joint Consolidation Loan Separation Act today, legislation that will fix a bureaucratic roadblock and provide much-needed relief for individuals, including domestic violence survivors, who need to sever student loans that were previously consolidated with a spouse. 193 House Republicans voted against this bipartisan, bicameral legislation, continuing their ongoing attacks on women, in this case survivors of abusive situations who are taking action to escape a financial situation that is proven to perpetuate abuse.
“When survivors escape abuse, they deserve to start over without remaining bound to their abuser through joint finances, let alone bearing responsibility for their debts. Today we took action to correct this bureaucratic oversight that has existed for two decades,” said Rep. Sherrill. “This common-sense legislation will provide financial freedom to individuals, including domestic violence survivors, who previously consolidated their student loan debt with their partner. I am deeply disheartened to see my Republican colleagues in the House continue their disregard for women by voting against this simple and meaningful bipartisan fix, which passed the Senate by Unanimous Consent.”
“JBWS applauds Congresswoman Sherrill’s support of this bill. Financial abuse occurs in about 99% of domestic violence cases. Economic abuse includes both financial restrictions, like not being allowed to work and financial exploitation. Consolidated student loans would fall under the opportunity for economic exploitation making survivors liable for debt of the person that abused them. The debt and resulting low credit scores can have a negative impact on them for the rest of their lives. This legislation would offer a way out for survivors and further prevent the person that abused them from having control over their futures,” said Diane Williams, CEO of Jersey Battered Women's Service (JBWS).
"Jewish Family Service of MetroWest New Jersey (JFSMW) is grateful to Congresswoman Mikie Sherrill for her support of domestic violence victims/survivors and applaud her vote to pass this legislation. Financial Abuse is nearly omnipresent in domestic violence relationships. Our work with survivors has shown how a victim of domestic violence cannot be safe unless they can extricate themselves from the financial control of their abuser. Legislation which provides for financial independence is a definite step in the right direction. This legislation will allow DV victims/survivors to separate their loan from their abusers, providing them with increased control over their own finances and increased safety and security in their lives and in the lives of their children" Diane Squadron, CEO, Jewish Family Service of MetroWest NJ.
From January 1, 1993 until June 30, 2006, the U.S. Department of Education allowed married couples to consolidate their federal student loans into one joint loan. Both borrowers agreed at the time to be jointly liable for repayment, which proved problematic in the event of divorce. While the program ended in 2006, Congress did not provide a way to sever existing loans, even in the event of domestic violence, economic abuse, or an unresponsive partner. The bill would fix this oversight, which has unfortunately left too many borrowers liable for their abusive or uncommunicative spouse’s student loan debt.
The Joint Consolidation Loan Separation (JCLs) Act would allow both borrowers to submit a joint application to the Department of Education (ED) to split their joint consolidated loan into two separate federal direct loans. It would also allow one borrower to submit a separate application if they are experiencing domestic or economic abuse or are unable to reasonably reach the other borrower. The remainder of the joint consolidated loan will be split proportionally, and borrowers will be able to transfer eligible past payments towards income-based repayment programs or the Public Service Loan Forgiveness Program.
Financial abuse occurs when the abuser uses financial means such as withholding student loan support, child support or spousal support payments to keep their “other” under their control. Research indicates that financial abuse occurs in 99% of domestic violence cases. Surveys of survivors reflect that concerns over their ability to provide financially for themselves and their children was one of the top reasons for staying in or returning to an abusive partner.
The Joint Consolidation Loan Separation Act has been supported by a number of organizations, including the National Network to End Domestic Violence and National Consumer Law Center.
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