Dems warn of student-loan companies' harmful repayment practices

A group of Democratic lawmakers, including Elizabeth Warren and Richard Blumenthal, have sent letters to CEOs of federal student-loan companies, requesting information on their plans to support borrowers as student-loan payments are set to resume in October. The lawmakers expressed concerns about potential harm to borrowers, citing previous correspondence indicating little engagement with borrowers during the pandemic and a lack of preparation to support them once payments resume. They asked for updated information on outreach efforts, customer service training, wait times, and payment plans. The lawmakers also highlighted the potential challenges faced by borrowers in accessing assistance from servicers during the payment pause. The Biden administration plans to implement temporary safeguards for borrowers, including a 12-month "on-ramp" period and a new income-driven repayment plan.