Debt Relief and Repayment Plans for Student Loan Borrowers: What You Need to Know

Six Democratic lawmakers, including Sen. Bob Menendez and Sen. Elizabeth Warren, have expressed concerns about student-loan borrowers being forced into repayment despite qualifying for debt relief. They sent a letter to the education secretary, Miguel Cardona, highlighting issues with the student-loan company MOHELA, including long wait times, problems with credit for qualifying payments, and delays in refunds. The lawmakers urged the Department of Education to address these issues before federal student-loan payments resume on October 1. They also requested information on tools to hold MOHELA accountable and data on call-hold times. MOHELA has previously faced scrutiny for processing delays, and borrowers in the Public Service Loan Forgiveness program rely on the company for proper administration of debt relief.