Student-loan repayment this year will be a 'huge undertaking': Ed. Dept.

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Transitioning millions of student-loan borrowers back into repayment this year will be a 'huge undertaking,' Biden's Education Department says

FSA's report noted that due to multiple extensions of the student-loan payment pause over the past year and temporary reforms to targeted relief programs, student-loan companies failed to meet their customer service objectives. To prepare for 2023, FSA said it will"take positive action in preparing loan servicers for the expected increase in incoming calls based upon impact of debt relief and the return to repayment.

Still, borrowers remain frustrated with the difficulty they've experienced getting simple questions answered from their servicer — especially with the uncertainty surrounding when they will resume payments this year, and if they will see an up to $20,000 reduction to their loan balances. "My fear, regardless of the outcome of the case, is that the White House is so desperate to restart payments and get back to normal that they've forgotten that 'normal' is a decades-long debt sentence; either way, it will be an excuse to say they'd done all the can," one borrower recently

 

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