Chairman Scott Praises Education Department for Expanding Relief for Distressed Student Borrowers
WASHINGTON – Chairman Robert C. “Bobby” Scott (VA-03) issued the following statement after the Department of Education announced it will pause collections and interest accrual on commercially-held student loans under the Family Federal Education Loan Program (c-FFEL) for borrowers who are in default.
“Today, the Biden administration took another step to expand relief for struggling student loan borrowers amid the COVID-19 pandemic. While Congress previously paused interest accrual and collections for distressed borrowers with federally held loans, these provisions did not cover borrowers with commercially-held loans under the Family Federal Education Loan Program (c-FFEL). Over the past year, House Democrats repeatedly proposed extending this relief to borrowers with privately held loans, including through the Heroes Act last May.
“Unfortunately, congressional Republicans and the previous administration blocked action that would have provided a financial lifeline to borrowers who had fallen behind on privately held student loans.
“The action taken today by President Biden and Secretary Cardona will provide immediate relief to more than 1 million Americans, including 800,000 who are at risk of not receiving their tax refunds this tax season. As we continue to confront the economic fallout from the COVID-19 pandemic, this is a necessary step to putting money in the pockets of struggling Americans and their families. I applaud this action from the Biden administration and hope it will provide additional relief to borrowers with non-federally held student loans who were left behind by the previous administration.”
Democratic Press Office, 202-226-08
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