Elizabeth Warren and Ayanna Pressley want to know how 9 student loan companies will avoid causing ‘grave harm to borrowers’ while implementing Biden’s debt cancellation
In August, Biden announced up to $20,000 in federal student-loan forgiveness. Elizabeth Warren and Ayanna Pressley requested information from loan companies on how they will carry out the relief. They said that borrowers could face "grave harm" if companies fail to deliver accurate information. Student-loan companies are tasked with carrying out President Joe Biden''s student-loan forgiveness — and two Democratic lawmakers want to ensure the process goes as smoothly as possible. At the end of August, Biden announced $10,000 to $20,000 in student-loan forgiveness for federal borrowers making under $125,000 a year. Massachusetts Sen. Elizabeth Warren and Rep. Ayanna Pressley want to ensure the nine companies who service those loans are prepared to implement that relief effectively. In a letter provided exclusively to Insider on Monday, Warren and Pressley asked the heads of each of the companies to provide an update on how they plan to deliver "accurate and timely information" on the recently announced relief, along with other reforms to the student-loan system. "Servicers must ensure that they are appropriately staffed to handle the increased volume of borrowers calling to get information about the administration''s recent announcements, that they are providing accurate information to borrowers, that they have strong systems in place to ensure balances and payments are adjusted accurately, and that borrowers are notified about these changes on a timely basis," Pressley and Warren wrote. "Failure to do so would cause grave harm to borrowers," they added.
Elizabeth Warren and Ayanna Pressley want to know how 9 student loan companies will avoid causing ‘grave harm to borrowers’ while implementing Biden’s debt cancellation
In August, Biden announced up to $20,000 in federal student-loan forgiveness. Elizabeth Warren and Ayanna Pressley requested information from loan companies on how they will carry out the relief. They said that borrowers could face "grave harm" if companies fail to deliver accurate information. Student-loan companies are tasked with carrying out President Joe Biden''s student-loan forgiveness — and two Democratic lawmakers want to ensure the process goes as smoothly as possible. At the end of August, Biden announced $10,000 to $20,000 in student-loan forgiveness for federal borrowers making under $125,000 a year. Massachusetts Sen. Elizabeth Warren and Rep. Ayanna Pressley want to ensure the nine companies who service those loans are prepared to implement that relief effectively. In a letter provided exclusively to Insider on Monday, Warren and Pressley asked the heads of each of the companies to provide an update on how they plan to deliver "accurate and timely information" on the recently announced relief, along with other reforms to the student-loan system. "Servicers must ensure that they are appropriately staffed to handle the increased volume of borrowers calling to get information about the administration''s recent announcements, that they are providing accurate information to borrowers, that they have strong systems in place to ensure balances and payments are adjusted accurately, and that borrowers are notified about these changes on a timely basis," Pressley and Warren wrote. "Failure to do so would cause grave harm to borrowers," they added.