July 14, 2021

Yahoo Finance: Democrats sound alarm on student loan collections as payment restart looms

Several prominent Democratic lawmakers are asking the Education Department (ED) about student debt collection practices in the face of a potential wave of student loan defaults when the pandemic payment pause expires, Yahoo Finance has learned.

"With student loan and interest payments scheduled to resume on October 1, 2021, and a wave of loan delinquencies and defaults likely to follow, we are concerned about the Department resuming these payment collections and are seeking information about how ED plans to avoid long-term financial harm to borrowers,” Sen. Elizabeth Warren (D-MA), Sen. Cory Booker (D-NJ), and Rep. Ayanna Pressley (D-MA) wrote in a letter sent to Secretary of Education Miguel Cardona on Wednesday morning, which was obtained by Yahoo Finance.

ED did not immediately respond to a request for comment.


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By:  Aarthi Swaminathan
Source: Yahoo Finance