Borrowers Already Face Widespread Abuses By Student Loan Companies; Shutdown “Will Be a Catastrophe.”
September 27, 2023 | WASHINGTON, D.C. — In anticipation of a government shutdown in just over 72 hours—the same day that student loan payments are set to resume after a 3.5 year pause—Mike Pierce, executive director of the Student Borrower Protection Center issued the following statement:
“If House Republicans shut down the federal government, the Biden Administration must shut down the student loan system too. As it stands, the Administration plans to keep paying the student loan companies botching this effort to restart payments while furloughing the federal employees who are supposed to help borrowers when things don’t go according to plan. This will result in more borrowers receiving inaccurate and incorrect information with less oversight and fewer resources to fix problems. Forty million people are being thrown to the wolves. It will be a catastrophe.”
Further Reading
Read a blog post outlining major issues already occurring with return to repayment: Dropped Calls, Hours on Hold, and Unanswered Questions: Student Loan Borrower Call-In Day Shows Servicers Are Alarmingly Unprepared to Return to Repayment
###
About Student Borrower Protection Center
Student Borrower Protection Center (SBPC) is a nonprofit organization focused on eliminating the burden of student debt for millions of Americans. We engage in advocacy, policymaking, and litigation strategy to rein in industry abuses, protect borrowers’ rights, and advance racial and economic justice.
Learn more at protectborrowers.org or follow SBPC on Twitter @theSBPC.