Shaheen, Boyle Lead Bicameral Letter Urging U.S. Department of Education to Support Borrowers While SAVE Student Debt Plan Undergoes Litigation
(Washington, DC) – U.S. Senator Jeanne Shaheen (D-NH) and U.S. Congressman Brendan Boyle (PA-02) are leading a group of 65 lawmakers in a bicameral letter urging the U.S. Department of Education to take further steps to support borrowers affected by ongoing litigation over President Joe Biden’s Saving on a Valuable Education (SAVE) Plan for student loan repayment and to be prepared with a plan for all possible judicial outcomes. In their letter to Secretary of Education Miguel Cardona, the lawmakers note that borrowers in the process of pursuing Public Service Loan Forgiveness (PSLF) have been particularly impacted by disruptions to their ability to complete the necessary payments to qualify for loan forgiveness.
The lawmakers wrote, in part: “Eight million SAVE Plan participants are facing uncertainty after the 8th Circuit Court of Appeals halted implementation of the SAVE Plan. While we recognize the Department of Education’s efforts to avoid penalizing borrowers by putting their accounts into forbearance, we remain concerned about the numerous challenges borrowers continue to face.”
The lawmakers continued: “In particular, for those borrowers in the process of pursuing Public Service Loan Forgiveness (PSLF), the current period of forbearance and accompanying disruptions in loan servicing create uncertainty for the status of their loan forgiveness eligibility and financial future. […] Unfortunately, our constituents report hearing conflicting information from servicers about whether any income-driven repayment plan applications are being accepted and processed. As a result, these borrowers are locked out of making progress toward the qualifying 120 monthly payments for PSLF eligibility even as they continue to serve our communities.”
They concluded: “For these and other borrowers currently enrolled in the SAVE plan, we remain concerned about the importance of ensuring that all borrowers have adequate support and information to successfully navigate student loan repayment as litigation continues. The Department must also ensure that it has sufficient plans in place to facilitate a successful and immediate transition for affected borrowers should the final judicial ruling ultimately prevent implementation of the SAVE plan. The Department’s plans should include preparing the necessary guidance for borrowers, adjusting contracts and issuing new regulations as needed. Given the instability created by the court’s ruling and the resulting widespread impact on borrowers, it is clearly in the public’s interest for the Department to move quickly as possible to be prepared for any potential judicial outcome.”
The letter is co-signed by 20 U.S. Senators and 45 U.S. Representatives.
The full text of the letter can be found here.
Senator Shaheen has led efforts in Congress to help students manage their debt and to make college more affordable, championing legislation to increase access to higher education for Granite Staters. Earlier this year, Shaheen reintroduced the bipartisan Student Protection and Success Act to address the mounting student debt crisis by increasing higher education institutions’ accountability for their students’ ability to repay their loans and requiring institutions to have a vested interest in the success of their students. She has previously introduced the Simplifying Access to Student Loan Information Act, which calls for the development of a central online portal to allow students to review all their public and private student loans, as well as repayment options, in one place. Shaheen has also previously introduced other legislation to aid undergraduate borrowers and successfully ushered her legislation with Senators Baldwin (D-WI), Braun (R-IN) and Fischer (R-NE) to combat student debt relief scams through Congress. During the COVID-19 pandemic, Shaheen led and supported numerous efforts to provide necessary relief to students and their families to afford college and other higher education opportunities. Shaheen is also helping to reintroduce legislation that would double the Pell Grant award and make college more affordable.
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