OFFICIALS LEGISLATION INTEREST GROUPS PUBLIC STATEMENTS COMMITTEES VETOES

ED is Woefully Unprepared to Return Student Loan Borrowers to Repayment

Press Release

Date: June 27, 2023
Location: Washington, DC
Issues: Higher Education

"Sixty days after June 30, 2023, the return to repayment for student loans will begin for 43 million borrowers. The Department has been on notice for nearly two and a half years that it would need to develop a plan for a smooth transition to repayment. … You have failed to provide us any evidence of any communication between the Department and loan servicers as of the date of this letter."

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"Mr. Secretary, the success or failure of the return to repayment sits squarely on your shoulders. … In addition, the committees are concerned about recent reports in the press that students are being encouraged not to make payments on their student loans once the return to repayment has begun."

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"We expect you and senior officers of the Department to exercise leadership in countering such efforts wherever and whenever they occur, particularly since nonpayment will lead to negative financial consequences for borrowers and barriers to future financial opportunities."


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