Washington, D.C. — Today, the Center for American Progress sent a letter to U.S. Secretary of Education Miguel Cardona reiterating the need for extended credit protections for student loan borrowers amid a volatile legal landscape. The letter also highlights the challenges faced by the U.S. Department of Education and student loan servicers in delivering adequate services to borrowers during this strenuous time.
In response to the COVID-19 pandemic, the Biden-Harris administration maintained a pause on student loan repayment to offer borrowers relief during the national emergency. With the expiration of this pause in September 2023, and the resumption of payments in October 2023, the Department of Education introduced a 12-month on-ramp to help financially vulnerable borrowers avoid delinquency, credit damage, or collection actions.
This provision is expected to end on September 30, 2024. With the future of student loan repayment now fraught with continued uncertainty due to several legal challenges, borrowers need continued support.
In this letter, CAP:
- Describes the support both borrowers and the Education Department will need in the midst of ongoing challenges with the return to repayment
- Highlights the scope of unresolved, underlying financial issues and other barriers preventing borrowers from making payments
- Calls on the department to provide continued support to borrowers in the form of an extended on-ramp
“Our nation’s student loan repayment system is plagued with widespread dysfunction,” said Stephanie Hall, senior director of Higher Education Policy at CAP. “Borrowers deserve to be protected from the financial consequences of the chaos erupting in our legal system—which is why the Center for American Progress is calling for an extension of the student loan repayment on-ramp.”
Read the letter: Letter from CAP to U.S. Department of Education Secretary Miguel Cardona, September 18, 2024
For more information or to speak with an expert, contact Mishka Espey at [email protected].