IHE: Federal Student Aid Funding Woes Complicate Resuming Student Loan Payments

[Wahoo Redux]

IHE: Federal Student Aid Funding Woes Complicate Resuming Student Loan Payments

Lower Deck:

Experts and advocates worry that the Education Department lacks adequate funds and won't be able to prevent high rates of default and delinquency when student loan payments eventually turn back on.

Experts and advocates are worried that the agency, without adequate funding, won't be able to provide the necessary support to ensure that millions of borrowers don't end up in default once payments resume. Congress didn't give the agency more money this year, leading to department budget cuts that have student loan servicers cutting call center hours and laying off staff. Those reductions come at a time when experts say more staff are needed.

It's like the whole system is collapsing.