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Senator Warren Urges Department of Education to Protect Borrowers By Overhauling Student Loan Collections Program

Press Release

Date: July 18, 2023
Location: Washington, DC
Issues: Higher Education

"I am concerned that the end of the federal payment pause year risks exposing borrowers who struggle to make their payments to wage garnishments, tax refund offsets, and other forms of collections which can exacerbate financial distress -- particularly if, as the Department has projected, delinquencies and defaults spike in the absence of additional loan relief.

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As the end of the federal pause on student loan payments, interest, and collections looms, I urge the Department to take every opportunity to protect borrowers who may struggle with repayment and reform the process by which ED collects on defaulted loans.

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The Department should build on these steps and revamp its student debt collections program to protect struggling borrowers after payments resume."


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