Political and Legislative
Democrats Press the Department of Education to Address Plans to Help Student Loan Borrowers in Default
Democrats are pressing the Department of Education for more information about plans to address the status of borrowers in default once federal student loan payments resume in the coming weeks.
The agency earlier this month said it would allow borrowers with paused loans to receive a “fresh start” when resuming payments “by eliminating the impact of delinquency and default and allowing them to re-enter repayment in good standing.”
The agency said the move would be carried out as part of its efforts to help borrowers transition more “smoothly” into repayment, after federal student loan payments and interest accrual were paused for more than two years under a pandemic freeze.
