A coalition of 112 advocacy groups has come together to request the Department of Education extend key protections for student loan borrowers amid ongoing legal challenges to the Biden administration’s student loan policies. These groups are calling for an extension of the “on-ramp” protections and the “Fresh Start” program, both of which are set to expire September 30.
Why it matters: Borrowers have been navigating significant uncertainty due to legal obstacles surrounding the SAVE repayment plan, which was designed to offer more affordable payments and debt forgiveness options through Public Service Loan Forgiveness (PSLF) and Income-Driven Repayment (IDR) programs. Millions of borrowers who planned their financial future around these options now find themselves in limbo.
Zoom out: The groups are urging the the Department of Education to allow the time borrowers spend in forbearance due to these legal challenges to count toward PSLF and IDR forgiveness. Currently, the zero-interest forbearance does not contribute to these forgiveness programs, causing further harm to borrowers who are already struggling.
- The coalition contends that without an extension of the on-ramp protections, borrowers could face dire financial consequences, including delinquency and default, through no fault of their own. They argue that as legal battles continue, no borrower should be forced into collections simply because they cannot access affordable repayment options.
The last word: “No borrower should be forced into delinquency, default, or collections while they are unable to access the full suite of affordable repayment options they are entitled to under the law,” the coalition states in their letter to Education Secretary Miguel Cardona.
