On March 15, New America's Higher Education Program joined with the Center for American Progress, the National Association of Student Financial Aid Administrators (NASFAA), The Pew Charitable Trusts’ Project on Student Borrower Success, and The Institute for College Access and Success (TICAS) to share joint recommendations for successfully transitioning borrowers back into repayment following the current student loan payment pause.
Even before the COVID-19 pandemic, many student loan borrowers were struggling, with more than a million borrowers going into default each year. When the current payment pause ends (scheduled for September 30, 2021), tens of millions of borrowers will move back into repayment simultaneously, presenting an unprecedented challenge for the Education Department (ED), the Office of Federal Student Aid (FSA), and its servicers. These recommendations suggest concrete steps that ED and FSA can take before the payment pause ends to ensure all borrowers can transition successfully back into repayment.
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