Article

2022-07-26 Government Corruption

Student loan servicers instructed to hold off sending billing statements

[Washington Examiner] Student loan servicing contractors for the federal government are being told to hold off on sending out billing statements as the Aug. 31 deadline looms for when a loan payment freeze of more than two years is set to end, according to a report.

Scott Buchanan, executive director of the Student Loan Servicing Alliance, said the Education Department told loan servicers not to send out notices about resuming payments as the Biden administration weighs forgiving billions of dollars in federal student loans.

"The situation is that we’re almost 30 days away from the planned resumption, and the department has been telling servicers to hold off on resumption communications for the last few months," Buchanan told the Wall Street Journal. "Maybe the department expects that the White House will yet again kick the can down the road."

A spokesperson for the Education Department told the outlet that it would be communicating directly to borrowers about ending the pause "when a decision is made."

Federal student loan payments have been halted since March 2020 due to the COVID-19 pandemic. A freeze on payments has been extended six times, twice under President Donald Trump and four times under President Joe Biden.

Biden has yet to make a final decision on student loan forgiveness, but some proposals have suggested he is considering expunging at least $10,000 per borrower. That number is significantly lower than the $50,000 in student debt forgiveness that Senate Majority Leader Chuck Schumer (D-NY) and Elizabeth Warren (D-MA) have proposed.

Posted by Besoeker 2022-07-26 03:24|| || Front Page|| [11128 views ] Top

#1 Evidently the Congress has no say in the matter.

Posted by Besoeker 2022-07-26 03:40|| 2022-07-26 03:40|| Front Page Top

#2 Congress has signed over its law making authority to the administrative state. The current set up is intentional.

Posted by Ebbaise Brown5939 2022-07-26 04:33|| 2022-07-26 04:33|| Front Page Top

#3 When I was involved in "collections," the joke around the shop was that many people operate under the mistaken impression that there's a statute of limitation on monies owed and it's as short as two weeks past due.

Posted by M. Murcek 2022-07-26 07:19|| 2022-07-26 07:19|| Front Page Top

#4 just because you don't get the statement doesn't mean the bill isn't due.

Posted by Chris 2022-07-26 09:06|| 2022-07-26 09:06|| Front Page Top

#5 Yeah Chris, your Mom has to actually hand it to you.

Posted by Mullah Richard 2022-07-26 09:17|| 2022-07-26 09:17|| Front Page Top

#6 If we are not in a recession and the economy is doing great what seems to be the hold up?

Posted by Airandee 2022-07-26 11:28|| 2022-07-26 11:28|| Front Page Top

#7 I think you are misunderstanding my statement

Posted by Chris 2022-07-26 14:46|| 2022-07-26 14:46|| Front Page Top

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