October 4, 2023
Student-loan borrowers are facing a host of challenges as they begin to enter repayment. The administration’s top education official said Congress can help.
October 1 marked the official end of pandemic relief for federal student-loan borrowers. Bills are now starting to become due after an over three-year pause, and interest started to accrue again in September, meaning millions of borrowers are experiencing an unprecedented transition back into repayment.
It’s a huge administrative task for the Education Department and federal student-loan companies — and borrowers have been suffering the consequences in the form of hours-long wait times to reach customer service, along with inaccurate billing statements.
Education Secretary Miguel Cardona told Insider in an interview that he’s aware of the challenges this transition is bringing to both borrowers and servicers.