"Biden Administration Takes Action Against Loan Servicers Amid Repayment Crisis and Borrower Risks"
Originally Published 2 years ago — by NBC News
Federal student loan borrowers are facing difficulties as they resume payments post-pandemic, with issues such as long hold times, processing delays, and inaccurate billing. The Consumer Financial Protection Bureau (CFPB) has highlighted these challenges and the Education Department is taking action against servicers failing to meet obligations, including withholding payments. The Biden administration's attempt to cancel up to $20,000 in student debt was blocked by the Supreme Court, adding to the complexity of the situation. The Education Department's recent actions underscore its commitment to protecting borrowers and ensuring servicers are held accountable for their performance.