With the payments to the Student Loans about to resume next week, borrowers face a new difficulty with a possible federal government shutdown expected for September 30th. Even though student loan servicers would continue their operations in the event of a Government shutdown, the Education Department would not work, impeding the process and approval of student loan forgiveness applications and resolution of disputes submitted by borrowers over actions by loan servicers. Advocates from the Student Borrower Protection Center (SBPC) have expressed concern about recommencing payments while federal employees responsible for assisting borrowers cannot work. Mike Pierce, executive director of the SBPC stated that “this will result in more borrowers receiving inaccurate information with less oversight and fewer resources to fix problems”. They now request President Biden to consider extending the student loan pause again if the shutdown occurs.
If you would like to read more, please visit: https://www.forbes.com/sites/adamminsky/2023/09/28/student-loan-borrowers-face-catastrophe-in-days-as-forgiveness-repayment-threatened-by-shutdown/?sh=221207f36b74