Today, Republican Leader of the Education and Labor Committee Virginia Foxx (R-NC) sent a letter to Secretary Cardona addressing the heightened importance of ensuring a smooth transition for student loan borrowers impacted by the recent announcements that two major student loan servicers are ending their federal contracts.
In the letter, Foxx writes: “There are now nearly 10 million borrowers who, following an 18 month pause, will return to repayment status with a new servicer. Since your Department is responsible for overseeing this systemic shift for student loan borrowers, you owe these individuals a transparent plan to ensure a smooth transition." She continues: “Congress, taxpayers, and student loan borrowers are still sitting in the dark. Indeed, [the New Hampshire Higher Education Assistance Foundation Network] cited the increasing uncertainty around the student loan program as the reason for its exit. If ‘business as usual’ was not sufficient, the new normal is unacceptable."
BACKGROUND: Following the Pennsylvania Higher Education Assistance Agency’s announcement that it will not seek an extension of its federal contract, Republican Leader Foxx wrote a letter demanding answers from Secretary Cardona on his department’s plan for a smooth transition. Since that letter was sent on July 12, 2021, the New Hampshire Higher Education Assistance Foundation Network announced its departure as well.
