Millions of student-loan borrowers will face 'catastrophic consequences' like delays in debt relief if Congress doesn't give Biden's Education Department more money, 17 Democratic lawmakers say
A group of Democrats wants to make sure the Federal Student Aid office gets the funding it needs next year.letter
The Democrats wrote that fulfilling Biden's budget request is"particularly critical given that FSA's FY 2023 funding was stagnant from the previous year, which severely undermines FSA's ability to implement critical programs" like reforms to Public Service Loan Forgiveness, income-driven repayment plans, and President Joe Biden's broad plan to cancel up to $20,000 in student debt.
"The Department of Education has projected that without additional loan relief, ending the payment pause will result in a devastating spike in delinquencies and defaults," they continued.
That means that millions of borrowers will reenter repayment this year with or without relief, and on top of all of that, the department wants to move forward with other targeted reforms — to which the lack of FSA funding has already presented issues. As Insider reported last month, the Education Departmentfor borrowers to see a one-time adjustment to their accounts, which was part of the IDR and PSLF overhaul the department announced last year.
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