60D Comment Response SBPC

March 12, 2024
The Honorable Miguel Cardona
Secretary of Education
U.S. Department of Education
400 Maryland Avenue, SW
Washington, D.C. 20202
VIA ELECTRONIC SUBMISSION
RE: “Solicitation for Public Comments on Joint Consolidation Loan Separation
Application” (Docket No.: ED-2024-SCC-0005)
Dear Secretary Cardona:
The Student Borrower Protection Center (SBPC) appreciates the opportunity to comment on the
U.S. Department of Education’s (ED or the Department) steps to implement the Joint
Consolidation Loan Separation Act (JCLSA or the Act) by developing an Application. 1 SBPC
commends the Biden Administration for its continued dedication to using its authority to deliver
the promise of student debt relief to millions of borrowers. However, Joint Consolidation Loan
borrowers have largely been excluded; we therefore urge the Department to implement the Act
quickly and to the fullest extent possible. Below we have outlined a list of actions the
Administration must take in order to finally deliver on the separation of Joint Consolidation
Loans.
I.

Background

Joint Consolidation Loans (JCL) are ineligible for the majority of loan repayment and relief
programs. As a result, most of these borrowers have been stuck with their loans for over 20 years
without access to the affordable payment plans or federal cancellation programs that are currently
in place. The JCLSA was enacted in October 2022 in order to permit JCL borrowers to separate
their loans from their current or former spouses. 2 The Act allows these borrowers to separate their
1

U.S. Dep’t of Educ., Solicitation for Public Comments on Joint Consolidation Loan Separation Application
(Docket ID ED-2024-SCC-0005), 89 FR 2217 (Jan. 12, 2024).
2

Joint Consolidation Loan Separation Act, Public L. No. 117-200, 136 Stat. 2219 (2022) (codified as amended at 20
U.S.C. § 1087e(g)).

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JCL’s into new individual Direct Consolidation Loans, as well as gain access to federal repayment
and relief programs for which they would otherwise not be eligible.
Despite the direct language of this Act, there has yet to be any action taken to implement it in
over a year. It is likely that borrowers, including those who would have their loans cancelled if
they could simply separate them, will be required to make years of payment on these debts before
receiving the relief that Congress intended.
It is vitally important that the Department implement this law as swiftly and efficiently for
borrowers as possible. This will require the Department to simplify the proposed application and
streamline the review process. Borrowers need plain language descriptions of what is required.
The Department must also ensure that servicer misconduct cannot derail or delay the process of
borrowers receiving the relief they are entitled to under the law.
II.

Recommendations for Measures ED Should Take to Protect Borrowers During the
Application Process
A. ED Should Ensure That All Borrowers Who Submit Applications, Whether Joint or
Separate, Are Processed Without Significant Delay or Reliance on Their
Co-Borrower

If a borrower3 applies for loan separation jointly, but their co-borrower does not submit their own
application within a specified period of time, ED should consider the first borrower to have
applied separately and should process their application. This is both to ensure that no application
languishes in administrative limbo while awaiting the co-borrower’s application, and to ensure
that the Act’s intent to help JCL borrowers is faithfully implemented.
Section 4 of the proposed application permits borrowers to apply for and receive a separate loan
without their co-borrower’s simultaneous application, but only if the applying borrowers has
experienced economic abuse or an act of domestic violence as defined by the Violence Against
Women Act (VAWA) of 1994,4 or if they cannot reach or access their co-borrower’s loan
information. There are additional foreseeable circumstances in which a borrower applying jointly
nonetheless meets the requirements for, and would benefit from, a separate application. In these
instances, ED should process a borrower’s application without the co-borrower’s application.
VAWA defines economic abuse as behavior that is coercive, deceptive, or unreasonably controls
or restrains a person’s ability to acquire, use, or maintain economic resources to which the person
We use “borrower” throughout this comment to refer to the person completing the application, and “co-borrower” to
refer to the other person responsible for the JCL. JCL’s have different definitions of “borrower” and “co-borrower” for
borrowers listed on the loan agreement. ED should use the definitions currently in place, or define these two terms for
the purposes of this application to prevent borrower confusion.
4
34 U.S.C. § 12291.
3

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is entitled.5 This includes using coercion or manipulation to restrict another person’s access to
money, assets, credit, or financial information, or exerting undue influence over a person’s
financial and economic behavior or decisions including forcing default on joint or other financial
obligations. 6
If, for example, a co-borrower purposefully delays filing their application after a borrower has
submitted their joint application, that could be considered a restraint on the borrower’s access to
affordable loan payments and/or cancellation and would have the effect of exerting undue
influence over the borrower’s financial decisions. ED should consider this to be a form of
economic abuse. 7 Although a borrower could opt to file a separate application initially, if the
circumstances that necessitate separate applications only arise in the course of seeking joint
applications, the borrower may not do so. Additionally, borrowers seeking separation may not
identify as having experienced economic abuse, even if their circumstances meet the statutory
definition, and so may seek joint separation, even if their co-borrower is not cooperative.
To ensure that one co-borrower’s inaction does not unduly delay an applying borrower’s
application, after a specified period of time, such as 30 days, ED should process the submitted
joint application as if it were a separate application, on the basis the applying borrower is
experiencing economic abuse. This a reasonable inference given the borrower’s affirmative
request for separation, as demonstrated by their application, and given the effect of the coborrower’s inaction, specifically restricting the applicant’s ability to access affordable payment
and debt cancellation.
The Department can also convert a single joint application into a separate application on the
grounds that doing so is in the best financial interest of the federal government, which is an
independent basis of authority for separation applications under the Act. 8 Although ED has not
specified what it would do with a joint application for which no corresponding co-application is
filed, it is likely the application would either be held indefinitely or denied at some point on the
basis of the missing co-application. In either instance, it is in the government’s best fiscal interest
to treat the filing as a separate application. First, a borrower with a pending application is
reasonably likely to follow up and inquire about the status of their application. Each touch point
with a borrower by a servicer costs the government. If the application is denied because there is no
co-application, then the borrower will merely re-file their application as a separate application,
which is the difference of one check box. Here, too, the rejection of the initial application and
subsequent processing of the new separate application costs money. It is therefore in the
government’s best fiscal interest to reduce unnecessary paperwork processing and borrower
communication by deeming joint applications without corresponding co-applications as separate
34 U.S.C. § 12291(13).
Id.
7
34 U.S.C. § 12291(13).
8
20 U.S.C. § 1087e(g)(2)(C)(ii)(II).
5
6

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after a specified period of time.
The Department can mitigate any concerns it has about non-filing co-borrowers’ rights by
sending them a notice upon receipt of the initial joint application. This would serve to prompt
the submission of the co-application and should pose no privacy or safety concerns, since if the
initial borrower had reason to fear their co-borrower, they would have applied separately.
FSA Response: The Department does not have the authority under the JCLSA to automatically
convert a joint application to a separate application in the circumstances described above. Section
6, Item 23.B., and the Instructions for completing the form explain that if the borrower has
checked either of the joint application options in Section 4, the application will not be processed
unless the co-borrower identified in Section 2 has also applied. If the co-borrower does not apply,
the borrower could choose to reapply under the separate application option and certify that they
meet the eligibility requirements to do so (no supporting documentation is required). When the
JCLSA is implemented, appropriate communications will be sent to both the borrower and the
listed co-borrower explaining any deadlines for submission of documentation and the
consequences of failing to meet submission deadlines.
No change.
B. Borrowers Should Be Placed in Administrative Forbearance While Their
Application is Being Processed
Borrowers should not be required to continue making payments on their loans while their
application is being processed unless the borrower requests to do so. 9 This will cause further
harm to the borrowers who face unaffordable payments while they await approval or denial of
their application, including borrowers who could qualify for a low- or zero-dollar payment under
Saving on A Valuable Education (SAVE) or for total cancellation of their loan. ED, or the holder
of their loans, should automatically place borrowers who apply for separation into administrative
forbearance until the processing of the application is completed and a new Direct Consolidation
Loan is originated. The Public Service Loan Forgiveness (PSLF) regulations already count this
type of processing forbearance toward cancellation, 10 and once in effect, the Income-Driven
Repayment (IDR) regulations will, too.11 Therefore, an administrative forbearance would not
have the unintended consequences of delaying borrowers’ time to cancellation. ED should
instruct the servicers who hold JCL accounts to place these borrowers into forbearance once their
“While we are processing your application, continue making payments on your joint consolidation loan (unless you
have been granted a deferment or forbearance) until you receive written notification that your joint consolidation loan
has been separated into a new Direct Consolidation Loan.” U.S. Dept’t. Of Educ., Instructions for Completing the
Application/Promissory Note, 3 https://www.regulations.gov/document/ED-2024-SCC-0005-0003.
10
34 CFR § 685.219(c)(2)(v)(H); 34 CFR § 685.205(b)(9).
11
U.S. Dep’t of Educ., Improving Income Driven Repayment for the William D. Ford Federal Direct Loan Program and
the Federal Family Education Loan (FFEL) Program (Docket ID ED-2023-13112), 88 FR 43820 (July 10, 2023).
9

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application is received.
FSA Response: This comment is not related to the information collection. However, borrowers
wishing to separate their joint consolidation debt may request a forbearance to pause payments
while this process is being implemented. Guidance has already been issued to borrowers,
servicers, and loan holders regarding the forbearance opportunity. Department-held joint
consolidation loans will receive this forbearance when requested by one of the co-borrowers.
Granting the forbearance for commercially-held Federal Family Education Loan (FFEL) Program
loans is up to the discretion of the loan holder.
III.

ED Must Simplify the Application to Separate a Joint Consolidation Loan to Facilitate
Borrower Completion

The primary goals of the proposed revisions to the Combined Application to Separate a Joint
Consolidation Loan are to reduce the burden on borrowers and ensure swift implementation and
processing. We offer the following recommendations about the overall separation process before
commenting specifically on the draft form, and urge ED to incorporate these comments into both
the form and the instructions, as appropriate:
•

ED must make clear at the outset who must complete the form. ED must add plain
language instructions to the beginning of the application that states that both borrowers
must complete separate applications, even if applying jointly. This instruction does not
appear until the fifth page of the proposed application, and appeared to be
counterintuitive to JCL borrowers we spoke with. Borrowers need to know exactly who
has to fill out the form, and when there are exceptions to whether the co-borrower must
file their own form, prior to starting section 1 of the application.
FSA Response: We will add instructional language at the beginning of the form
clarifying that both co-borrowers must complete separate applications even in a joint
application scenario.

•

ED should remove unnecessary or duplicative information. At the outset of the
application, ED should only require necessary information from borrowers. The length of
the application can be a barrier to completion for many borrowers—especially given the
number of documents that must accompany this form. Therefore, for this program, we
recommend that all unnecessary or duplicative information be removed.
FSA Response: The comment does not identify specific information on the form that is
believed to be unnecessary or duplicative. The combined application and promissory note
requests only information that is required to identify the applicant and the joint
consolidation loan to be separated, and to determine the amount of the applicant’s new
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Direct Consolidation Loan.
No change.
•

ED must offer an online application. ED has indicated it has no intention to create an
online application,12 however, an online application will undoubtedly aid in streamlining
the process of separating these loans. An online application would also facilitate
borrowers’ enrollment in IDR and PSLF, as they could request these programs and the
separate loans, in one single submission. The Department’s justification for not creating
an online application is that the cost was high relative to the low number of JCL
borrowers. However, paper applications are subject to more human and processing
errors, which can be costly to address. Although it may be expensive, it would be easier
for borrowers to complete an online application, with an option to print and mail the
paper application, if necessary.
FSA Response: The Department decided to move forward with a paper-only application
because the cost and effort that would be required to create an online process for the
relatively small number of joint consolidation loan borrowers would have pushed the
implementation timeline of this effort even further than the current timeline.
No change.

•

ED should establish a phone line or email to specifically address JCL borrowers’
questions. ED should ensure clear communication with this group of borrowers by

establishing a phone line or email to specifically address these borrowers’ questions as they come
in. Due to the limited number of borrowers affected and the specialized nature of this legacy loan
portfolio, ED should anticipate the borrowers will initially experience complications and
confusion while applying to have their JCL separated. It would benefit borrowers, servicers,
commercial FFEL holders, and the Department to create a specialized hotline or online portal for
borrowers to turn to with questions, rather than requiring all servicers to develop paper resources,
call scripts and staff training, and dedicated website materials.

FSA Response: When the Department begins accepting applications under the JCLSA,
borrowers will be provided with contact information for questions and assistance.
•

ED should translate the application into multiple languages. An issue that stood out
immediately was that the forms were published in English only. Executive Order 13166
establishes a commitment to improving accessibility to federal programs for people with
limited English proficiency by creating a system where those persons can meaningfully

12
U.S. Dep’t of Educ., Supporting Statement for Statement for Paperwork Reduction Act Submission, 3,
https://www.regulations.gov/document/ED-2024-SCC-0005-0003.

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access the programs or services provided by the agency. 13 Currently, the application is
only available in English, and there has been no indication that it will be published in any
other language so that those with limited English proficiencies are able to fill it out. This
is imperative for borrowers who are not native English speakers, yet need to seek
separation of their joint consolidation loans. There should be at least one other language,
such as Spanish, included in the final publishing of this application.
FSA Response: Department of Education applications and forms are not translated into
other languages until after the forms are cleared through the Office of Management and
Budget (OMB) process. The Department will consider translating the form into Spanish if
it is found that there is a demonstrated need to do so.
•

ED should establish a concrete timeline to process the form and provide a
determination on its approval. JCL borrowers have been waiting long enough. Another
indefinite delay will continue to cause financial and emotional harm to borrowers. As the
application currently reads, these borrowers are required to pay on these joint loans while
ED or its contractors process the application for separation. Furthermore, while these
forms are being processed, these borrowers are missing out on beneficial federal programs
like the PSLF Waiver, the IDR Account Adjustment, and access to the more affordable
SAVE repayment plan. While we appreciate ED’s commitment to providing borrowers
with the IDR Account Adjustment if they are unable to split their loans before the
program’s end,14 it is still critical that ED process these forms quickly and communicate a
clear timeline for processing to these borrowers.
FSA Response: This comment is not related to the information collection.

IV.

Simplifying and Clarifying the Combined Application to Separate a Joint
Consolidation Loan and Direct Consolidation Loan Promissory Note

In addition to the comments above, which apply to the overall JCLSA implementation, we offer
the following specific comments on the Department’s proposed application. Here, too, we
emphasize simplicity and clarity to facilitate borrower completion.
Section 1: Borrower Information
Remove the driver’s license state and number. It is duplicative to ask for this information when
Exec. Order No. 13166, 65 C.F.R. 159 (Aug. 16, 2000), https://www.govinfo.gov/content/pkg/FR-2000-08-16/pdf/0020938.pdf.
14
“What if I have a joint spousal consolidation loan and can’t split this loan before the IDR payment count
adjustment?” Fed. Student Aid, Payment Count Adjustments Toward Income-Driven Repayment and Public Service
Loan Forgiveness Programs, https://studentaid.gov/announcements-events/idr-account-adjustment.
13

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ED asks for the borrower’s social security number in the line above this response. Borrowers
should be identifiable in the National Student Loan Database System through full name, date of
birth, and social security number. Because ED is not providing an online option to complete the
application, which could provide more security for this type of sensitive information, it should
not require borrowers to submit more personal private information than is absolutely necessary to
process the application.
Also, the employer information should be removed unless ED will use this information to
quickly determine a borrower’s PSLF eligibility.
FSA Response: Driver’s license information as well as employer information is requested on
other Direct Loan Program promissory notes. This information may be used to help locate the
borrower if the borrower cannot be reached by other means.
No changes.
Section 2: Co-Borrower’s Information
Requiring a borrower to enter their co-borrower’s social security number could pose an
unnecessary, and in certain circumstances, an insurmountable, administrative challenge. The
Department should consider factors such as if the borrowers are no longer in contact with each
other, and the borrower submitting the application does not have access to such information.
This is particularly burdensome for borrowers filing separately because they may have
experienced domestic or economic abuse by their co-borrower. The co-borrower’s full name and
date of birth should be sufficient to identify them. Therefore, ED should make this information
optional for those who do not have it.
FSA Response: The co-borrower information is requested to identify the joint consolidation loan
being separated. The applicants should provide as much information as possible to prevent
processing delays. We believe that in virtually all cases the applicant should know the coborrower’s full name and date of birth, and in many cases the applicant would also have access to
information showing the co-borrower’s social security number. If a borrower does not have access to
the co-borrower's SSN, the borrower can leave it blank. The consolidating servicer may contact the
borrower for additional information to identify the joint consolidation loan in this scenario.

If the borrower certifies that they have experienced domestic violence or economic abuse, or
cannot access the co-borrower's loan information, the borrower has the option of applying
separately.
No changes.
Section 3: Reference Information
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The instructions for this section should include the entire instructions that are listed on page 2 of
the separate instructions document. The borrower should be made clear within the application
that the listed reference will not be responsible for the loan. These details are not clear in the main
application document on which the borrower will be focused.
FSA Response: We will add language to Section 3 making it clear that references are not
responsible for the loan.
Section 4: Joint or Separate Application to Separate a Joint Application
Move The Definition of “Current Outstanding Balance Of Joint Consolidation Loan”
The definition of “current outstanding balance of joint consolidation loan” should be moved to the
top of this section after “CHECK ONLY ONE.” It is a duplicative statement of the later
definition on page 5, which should be removed. It is best to define the term fully in the first
instance of its use. The definition should make clear to the borrower how their current
outstanding balance is being determined the first time they encounter the term.
FSA Response: We agree that it would be more appropriate to place the definition of “current
outstanding balance of joint consolidation loan” at the beginning of Section 4 and will make that
change. We also agree that the duplicative definition of this term on page 5 can be removed and
replaced with a cross-reference to the definition in Section 4. Additional information that is part of
the current definition on page 5, but not included in the current definition in Section 4, will be
added to the Section 4 definition.
Remove Box #19 for Simplicity
Box #19 should be removed and the option to separate loans based on a divorce decree, court
order, or settlement agreement should be included as an additional selection within box #18.
FSA Response: Box 18 and Box 19 describe two different joint application options and are best
presented separately.
No change.
Clarify How The Balance For Separated Loans Will Be Calculated
Lastly, ED should clarify the math used for determining the amount of separate loans attributable
to the borrower-applicant that are not determined by a divorce decree, court order, or settlement
agreement. As written, the language describing how the borrower’s separate loans will be
calculated is confusing: “My new individual Direct Consolidation Loan will be for an amount
equal to my portion of the joint consolidation loan. If I check Item 18, my portion will be
determined by multiplying the current outstanding balance of the joint consolidation loan (see
below) by the percentage of the original outstanding balance of the joint consolidation loan that
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was attributable to my individual loans that were repaid by the joint consolidation loan when the
joint consolidation loan was made.”
The form should instead say: “If I check item 18 and do not include a divorce decree, court order,
or settlement agreement, my new individual Direct Consolidation Loan will be equal to the share
of the joint consolidation loan’s current outstanding balance that is proportional to my original
loans that the joint consolidation loan was used to repay. For example, if my co-borrower and I
each had $10,000 in individual loans that were repaid using a joint consolidation loan for
$20,000, my new Direct Consolidation Loan will be equal to 50 percent of the current
outstanding balance of the joint consolidation loan. If I select the box to have my loans separated
based on a divorce decree, court order, or settlement agreement, then my loans will be separated
based on the document(s) included.”
FSA Response: We agree that there may be ways to explain the determination of the new
consolidation loan amount more clearly and will propose new language.
Section 5: Repayment Plan Selection
The application states that borrowers can go to studentaid.gov to apply for an IDR repayment
plan, but it is unclear how the borrower should connect the online request to their paper
application to separate their loans. ED should provide clear instructions for how to do this.
FSA Response: The borrower does not need to complete any additional steps to connect an
online IDR application to their new individual Direct Consolidation Loan. This will be handled in
accordance with existing operational procedures.
No change.
Section 6: Borrower Certifications, Authorizations, and Understandings
On page five under part B, borrowers applying jointly must submit the same application, select
the same joint application option in section 5, and if they seek to divide the loan balance based on
a divorce decree, court order, or settlement agreement, they must provide the same
documentation as the other. This is duplicative and could result in delays or economic abuse, as
discussed in section II. A. above. ED should add the following language and adopt the
corresponding policy, discussed above, “If I selected to have my loans separated based on the
same divorce decree, court order, or settlement agreement, and my co-borrower does not submit
the same document(s) within 30 days, then the servicer will proceed with my application
separately as a form of economic abuse, as defined by VAWA.”
FSA Response: The Department does not have the authority under the JCLSA to automatically
convert a joint application to a separate application as recommended.
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No change.
Section 8: Note Terms and Conditions/Borrower’s Rights and Responsibilities (BRR)
ED Must Maintain Parent PLUS Borrowers’ Options During The Slow JCLSA Rollout
On page 12 there is a section that reads: “If you apply to separate a joint Direct Consolidation
Loan or Federal Consolidation Loan into a new Direct Consolidation Loan on or after July 1,
2025, you may not repay the new Direct Consolidation Loan under the SAVE Plan if your
portion of the joint consolidation was attributable to one or more parent PLUS loans.”
If ED delays the implementation of the Act, then JCL borrowers with Parent PLUS loans could
miss out on enrolling in the SAVE plan. ED should either commit to moving swiftly to
implement the Act into this Note or commit to extending this deadline if, by the end of 2024, ED
does not believe the Act will be implemented by this deadline. Borrowers should not miss out on
more affordable repayment plans because of ED’s delay in implementing the application.
FSA Response: These comments do not relate to the information collection.
ED Should Ensure Applicants’ Right To Full PSLF Payment Credit
On page 15, there is a statement that PSLF payment credit will be based on the weighted average
of qualifying payments made before consolidation. ED should instead place in the note, or at least
in the instructions, that the rules used for the PSLF Waiver and IDR Account Adjustment will
apply to this program so that these borrowers can receive credit under both programs due to the
delay in implementing the Act.
If the PSLF Waiver or IDR Account Adjustment rules govern how PSLF or IDR payments are
credited to these borrowers, they will receive as much time toward cancellation as their oldest
loan, including certain periods of deferment or forbearance. 15 Due to ED’s delay in implementing
the JCLSA, however, JCL borrowers could miss the PSLF Waiver deadline and will not meet the
current deadline to consolidate their loans and benefit from the Account Adjustment.
ED has committed to preserving JCL borrowers’ ability to benefit from the PSLF Waiver and the
IDR Account Adjustment in certain instances. 16 The Direct Consolidation Loan Master
Promissory Note should include language that codifies this commitment. If that is not possible,
then the Application’s instruction should include such language.

Fed. Student Aid, Payment Count Adjustments Toward Income-Driven Repayment and Public Service Loan
Forgiveness Programs, https://studentaid.gov/announcements-events/idr-account-adjustment.
16
Fed. Student Aid, Joint Consolidation Loan Separation News and Updates, https://studentaid.gov/announcementsevents/joint-consolidation-loans.
15

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FSA Response: The Department has already provided guidance that joint consolidation loan
borrowers with commercially-held Federal Family Education Loans (FFEL) will receive
retroactive application of the one-time income-driven repayment account adjustment once the
separation process is implemented, and the borrower or borrowers apply for separation and
reconsolidation into the Direct Loan program. These borrowers will likewise receive credit
towards Public Service Loan Forgiveness (PSLF) if the borrower was otherwise eligible. Because
this is a one-time benefit that will not apply going forward, it is not described in the combined
separation application and promissory note.
No change.
V.

Streamlining the Instructions for Completing the Combined Application/Promissory
Note

The instructions being in a separate document is counterproductive and forces the borrowers to
flip between two different documents in order to fill out one of them. This document should be
removed, and replaced with clear and simplified instructions throughout the actual application at
the top of each section, where necessary, so that borrowers only have to refer to the top of the
page instead of to another document entirely. Additional information to include on the first page
of the instructions would be the lines about using blue or black ink, how to enter dates, and the
bolded line about providing complete information. If ED keeps the instruction packet, it should
include sample loan balances to illustrate how the loans could be separated, examples of when
one can apply separately for clarity, or brief explanations for why ED requires certain information
like one’s driver’s license number. This packet should not include the instructions that are vital
for completing the form.
FSA Response: We agree that the existing instructions may not be sufficiently clear for all borrowers.
Accordingly, we will propose revised and expanded instructions that will be incorporated at the beginning of
the combined application and promissory note.

VI.

ED Should Reduce The Administrative Burden Faced By Borrowers Seeking To
Separate Their Joint Consolidation Loans
ED should take a more holistic approach to determining the administrative burden that this
process will have on borrowers by taking into account the learning costs, psychological costs, and
compliance costs. 17 It is important to acknowledge these costs and the additional harm they
would cause at every point in the development of this process to better determine how it can be
made more efficient and simple for the borrowers to navigate. Learning costs are the costs
applicants face in learning about a program and its embedded complexities, including if they are
Donald Moynihan, Pamela Herd, & Hope Harvey, “Administrative Burden: Learning, Psychological, and
Compliance Costs in Citizen-State Interactions,” Journal of Public Administration Research and Theory 25 (1) (2015):
43–69, available at https://doi.org/10.1093/jopart/muu009.
17

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eligible, what the benefits of the program are, how to navigate the application process, and its
various rules in order to maintain eligibility. Psychological costs are the costs that applicants and
participants face when participating in unpopular programs and the stigma they carry, including
the stress arising from the programs’ processes. Compliance costs are the costs applicants and
participants face in the time it takes to complete applications and recertifications, provide
documentation of their eligibility, and respond to discretionary demands to keep their benefits.
As the application is currently drafted, we have heard from borrowers with Joint Consolidation
Loans that it is confusing, even in regards to simple questions such as, “Who needs to complete
this form?” and borrowers will likely have trouble completing it in one sitting without calling and
waiting on hold to speak with servicers or seeking outside assistance. This adds to the learning
cost that it will take to complete the application, and will undoubtedly amount to higher costs for
student loan servicers, borrowers, and ED staff. For example, some borrowers may have to
submit a divorce decree, court order, or settlement agreement which means they may have to go
to the courthouse to obtain copies of these documents, which costs more money and more time,
but is necessary to complete the form. This would add to the learning and compliance cost it takes
to complete the form and should be considered by ED when developing the form.
Since the application is currently in paper format only, borrowers will also have to mail the
applications with the supporting documents to ED, or one of its contractors, which will pose
additional burdens on borrowers who need to take additional security measures to make sure it is
delivered safely.\
The issues pointed out above all contribute to these costs and should be factored into ED’s
determination of the best way to disseminate the form. Borrowers will bear the brunt of any of
these costs, so ED has a duty to make sure that they are as minimal as possible. ED should
consider the time it will take to learn the program, the psychological cost that these borrowers
have to endure while waiting, and not being a priority, and the cost it will take to comply with the
application process (e.g. completing the application, obtaining supplemental documents when
necessary). Therefore, as ED finalizes the application, it should prioritize simplification by
eliminating unnecessary reporting, and other requirements wherever possible, while additionally
using this application and existing administrative records to automatically enroll individuals into
other student debt relief programs to minimize the burden on borrowers.
****

As the Department continues to revise the application, it should keep in mind that these
borrowers are harmed each day they are tethered to their co-borrower’s loans. This process
should be expedited to ensure that these borrowers receive separation as well as access to
affordable repayment plans, and cancellation programs that are currently in place. Since the
Department is not automatically separating borrowers’ loans, it should prepare an outreach plan
that encourages and educates as many borrowers as possible about the program and the process.
The Department should also ensure that any separation denials include clear grounds for denial,
1025 Connecticut Avenue NW, Suite 717 Washington, D.C. 20036
Student Borrower Protection Center • www.protectborrowers.org
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information on borrowers’ rights, and opportunities to appeal the denial or to reapply.
We would be happy to discuss this content and ED’s ongoing work related to the JCLSA. Thank
you for your time and consideration.
FSA Response: These comments do not relate directly to the information collection. However, we
intend to provide further information for borrowers regarding the process of separating a joint
consolidation loan when we begin the implementation of the JCLSA.
Sincerely,
Student Borrower Protection Center

1025 Connecticut Avenue NW, Suite 717 Washington, D.C. 20036
Student Borrower Protection Center • www.protectborrowers.org
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