Rep. García demanding Answers from Education Department as Nearly 10M Student Loan Borrowers Face Default

Lawndale News Chicago's Bilingual Newspaper - Education

Congressman Jesús “Chuy” García (IL-04) led 27 of his colleagues in a letter to Education Secretary Linda McMahon demanding she provide answers and transparency about the growing federal student loan default crisis as nearly a record of 10 million borrowers enter default under the Trump Administration.  The members warn that as millions of Americans struggle to keep up with student loan payments while also facing the rising costs of housing, food, healthcare and other basic necessities, the Department of Education, under Secretary McMahon’s leadership, has failed to protect borrowers as she focuses on dismantling the Department and undertaking big changes to the federal student loan system.  The members also raised concerns about changes to federal repayment options enacted under H.R. 1. Several existing repayment plans are being phased out and they worry that these changes could result in higher monthly payments or reduce access to affordable repayment options for some borrowers.  The Members emphasized that default can have serious and long lasting consequences for borrowers, including damaged credit, wage garnishment, seizure of tax refunds, and barriers to homeownership and economic mobility.

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