Democratic attorneys general want more student loan protection
BOSTON (SHNS) – Attorney General Maura Healey and 22 other state attorneys general on Wednesday urged the Biden administration to expand student loan protections in the time of the pandemic and prepare for a “massive and unprecedented challenge Once required for payments from millions of borrowers.
President Donald Trump first stopped accruing interest and required payments on student loans held by the federal government, and President Joe Biden has since extended coverage until September 30, 2021. In one letter to US Education Secretary Miguel Cardona, attorneys general have urged the administration to continue withholding payments and waiving interest “for as long as necessary to support distressed borrowers.”
They welcomed the announcement on Tuesday, saying the break will now also apply to overdue private loans in the federal family education loan program and called for even more action to reach other student loan holders. private.
The attorneys general, all of whom are Democrats, also urged the US Department of Education to delay recertifying all income-based repayment plans for at least a year after the pandemic payments hiatus ends to help protect borrowers.
“When these protections expire on September 30, 2021, 42 million student loan borrowers will re-enter repayment at the same time,” they wrote. “This is a huge and unprecedented challenge that has the potential to negatively impact borrowers and their families, the Department, student loan managers, as borrowers contact their loan managers to resume. reimbursement.”