The Attorney General of Virginia announced yesterday that it is reducing the fees it will charge when collecting on unpaid student loans for individuals who attended certain state colleges or universities. And the AG’s office is asking other colleges and universities to lower their collection fees, too.
The intention behind the reduction is to lessen the burden placed on students attempting to repay their student loans.
Instead of charging 30% on claims referred to the AG’s office for collection, it will now charge 15%, according to a memo released by Attorney General Jason Miyares. Miyares noted that the 15% mark is even lower than the 18% charged by the federal government when collecting on unpaid federal student loans.
Miyares, who took office earlier this month following the inauguration of new Governor Glenn Youngkin, also said he was also asking colleges and universities that have higher fees to lower them to 15%.
“As someone who worked to put themself through college and still has their own student loans, I understand the strain student loans can put on working families,” Miyares said in a statement. “By working to reduce the attorney collection fee from 30% to 15% on accounts deemed delinquent by the respective universities, we are making immediate, internal procedural improvements that will help Virginians.”
The announcement comes as calls for the federal government to cancel some or all of outstanding student loans intensifies. Yesterday, 80 members of Congress sent President Joe Biden a letter, calling on him to release a report he commissioned last year on whether he has the authority to cancel student loan debt.
“In light of high Covid-19 case counts and corresponding economic disruptions, restarting student loan payments without this broad cancellation would be disastrous for millions of borrowers and their families,” they wrote.
