Scott, Bonamici Statement on New Report Showing How Student Loan Servicing Problems Can Jeopardize Long-Term Financial Security for Older Americans
WASHINGTON – Ranking Member Bobby Scott (VA-03) and Congresswoman Suzanne Bonamici (OR-01) issued the following statement after the Consumer Financial Protection Bureau (CFPB) released a report that examines complaints from older student loan borrowers about servicing practices that can jeopardize their long-term financial security:
“Today, the Consumer Financial Protection Bureau (CFPB) published a new study about older borrowers who have student loan debt. Troublingly, the report exposed that more than one in three federal student loan borrowers age 65 and older was in default. The report shows how breakdowns in loan servicing have made it difficult to enroll in a suitable income-driven repayment plan, sometimes leading to default. It also highlights cases of defaulted borrowers who had actively made payments to rehabilitate their loans, yet saw their Social Security benefits erroneously garnished.
“Last November, Committee Democrats wrote to the U.S. Secretary of Education seeking improvements in the quality of loan servicing, particularly for borrowers seeking to exit default. We strongly believe that loan servicers should provide borrowers with accurate and consistent information and support borrowers as they navigate repayment. Student loan borrowers deserve accurate information and fair treatment as they address their student loans, but too often their loan servicers fall short. The CFPB report shows the continued need to improve loan servicing for all borrowers, regardless of age.”
Press Contact
Kiara Pesante, 202-226-0853
Maggie Rousseau, 202-754-1649
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