“We applaud the Biden Administration for extending the payment pause for student loan borrowers today, and for providing a critical “fresh start” for millions of borrowers who were in delinquency or default on their student debt when the pandemic began.
“This means that borrowers who had been in delinquency or default as of March 2020 will be returned to good standing and will not be subject to the financially devastating effects of default, including having their wages, tax credits, and other benefits seized.
“The Education Department must implement this policy in a way that protects vulnerable borrowers and helps them enroll in—and receive promised relief from—income-driven repayment (IDR) plans, where more affordable payments (as low as $0) can help ensure they do not end back up in delinquency or default.
“We also urge policymakers to further protect borrowers by making broader reforms to the student loan repayment system—including lowering payments for borrowers through a strengthened IDR system—as well as making permanent reforms to the punitive system of student loan default, which plunges students and families deeper into financial instability, perpetuating the vicious cycle of poverty and disproportionate debt outcomes by race.”
The Institute for College Access & Success is a trusted source of research, design, and advocacy for student-centered public policies that promote affordability, accountability, and equity in higher education. For more information see www.ticas.org or follow us on Twitter and Facebook.