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Education Secretary says department is resuming collections; committee members raise concerns about defaults and servicing confusion
Summary
Secretary McMahon said the department sent repayment letters May 5 and has collected nearly $100 million since then while members warned nearly one in four borrowers are delinquent or in default and asked how the department will support struggling borrowers.
Education Secretary McMahon told the House Appropriations subcommittee that the Department of Education has begun steps to return federal student loan borrowers to repayment following pandemic-era pauses and previous administration actions that created “confusion in the loan servicing system.”
McMahon said the department published payment-option information at studentaid.gov, sent letters on May 5 and, since those letters, has collected “almost a hundred million…
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