Home News Senators urge Education Department to fix student loan forgiveness programs – Yahoo! Finance

Senators urge Education Department to fix student loan forgiveness programs – Yahoo! Finance

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A group of leading Democratic Senators is pushing the Education Department to expand and reform existing student debt forgiveness programs so more debtors can access relief.

“We encourage the Department to pursue policies that reduce disparities in the burden of student debt, simplify loan repayment, close donut holes in forgiveness programs, and improve the overall confidence of borrowers in the federal student loan system,” the letter to Education Secretary Miguel Cardona said.

Twenty-three lawmakers signed the letter, including Senator Patty Murray (D-WA), chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, Senators Chuck Schumer (D-NY) and Elizabeth Warren (D-MA).

The letter comes as the payment pause on federal student loans is set to expire at the end of September. The Department of Education (ED). or the White House has so far not announced any plans to extend the pause.

Meanwhile, borrowers say they aren’t prepared to resume paying their loans. In one survey by an advocacy group of 24,000 borrowers, 9 in 10 respondents across all 50 states were not ready to start making payments again in October.

Senators push Cardona to address range of broken forgiveness programs

The Democratic Senators urged Cardona to use his authority to reform key problem areas.

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