10/12/2023 0 Comments Resume now log in![]() ![]() However, interest would still accrue during that time, so borrowers' balances would still grow - and even more so without any broad debt relief.īiden's administration has repeatedly said it would work to go through the rulemaking process as quickly as possible, but at this point, the process will not be completed before payments resume in October due to the negotiated rulemaking timeline. The groups were referring to Biden's announcement that he would implement a 12-month "on-ramp" period once payments resume, which would protect borrowers from negative credit reporting should they miss any payments. "While the Administration has announced notable steps to mitigate the harshest economic consequences for borrowers-including shielding borrowers from negative credit reporting, delinquencies and defaults should they fall behind-restarting the fundamentally broken student loan system without first delivering on the relief promised to borrowers remains a grave mistake, and will only exacerbate already dire economic situations for millions of American households," they continued. "The recently signed Fiscal Responsibility Act which suspends the debt ceiling until 2025 while codifying the end of the student loan payment pause-a crucial economic lifeline for millions- has made it all the more urgent to act now to cancel student debt before payments resume," the groups said in the letter. ![]() But payments are still scheduled to resume in October, and the advocacy groups do not want borrowers to foot another bill without any relief. That route requires the administration to undergo the negotiated rulemaking process, which could take months due to public hearings and negotiations. The Supreme Court struck down Biden's broad plan to cancel up to $20,000 in student debt for federal borrowers at the end of June, and shortly after the decision, the Education Department announced it would be pursuing a new route to cancel student debt using the Higher Education Act of 1965. On Wednesday, 179 advocacy groups and unions - including the Student Borrower Protection Center, AFL-CIO, and NAACP - sent a letter to President Joe Biden urging him to provide student-debt relief to millions of borrowers before they have to resume repayment. Nearly 200 organizations don't want to see that happen. Student-loan borrowers are inching closer and closer to a payment resumption without the broad debt relief they were promised. Assembled an advisory board that has been instrumental in providing direction to corporate structure and strategic planning.Account icon An icon in the shape of a person's head and shoulders.
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