Per the Maryland Attorney General’s Office: Maryland Attorney General Anthony G. Brown today joined a coalition of 19 Attorneys General in calling for further protections when student loan payments resume on October 1. Over 40 million borrowers are set to resume making payments following a three-and-a-half-year pandemic payment pause. In that time, a majority of loans were transferred to new servicers. Congress passed a law in June barring further extensions of the payment pause.
Although significant steps have been taken to transform the flawed federal student loan repayment system, including creating SAVE – the new, more affordable income-driven repayment (IDR) plan – and restoring borrowers’ credit toward the Public Service Loan Forgiveness Program, the coalition cautions that current circumstances are likely to create serious and widespread loan servicing problems, especially as the U.S. Department of Education itself appears to lack capacity to assist borrowers, oversee servicers, and enforce borrower protections during the return to repayment.