10.10.24

GAO Report Spotlights How ED Effectively Communicated with Student Borrowers About Successfully Resuming Loan Payments

Clear messaging is key as millions navigate the return to making monthly loan payments post-pandemic.

WASHINGTON – Today, the Government Accountability Office (GAO) unveiled a new report highlighting how the Department of Education effectively communicated with borrowers about resuming student loan payments following the temporary pause during the COVID-19 pandemic and how they were able to prevent record numbers of delinquency. As of January 2024, around 17.8 million borrowers were current on their payments, reflecting effective communication during this transition.

The report was requested by Ranking Member Robert C. “Bobby” Scott (VA-03), House Committee on Education and the Workforce.

In response to the pandemic, the Department paused loan repayments, interest accrual, and default collections in March 2020, providing borrowers significant economic relief. The payment pause ended in September 2023, and monthly payments and interest accrual resumed in October 2023.

Beginning in July 2023, the Department implemented a robust communication strategy to support this unprecedented return to repayment, reaching out to borrowers through various channels to help them understand their responsibilities and the available relief options.  Specifically, the Department provided information about the transformational Saving on A Valuable Education (SAVE) income-driven repayment plan that decreased monthly payments for low- and middle-income borrowers.  The Department also provided several resources to support borrowers at risk of delinquency or default, including the one-year on-ramp period where negative credit reporting ceased, and the Fresh Start Program, which helped borrowers get their previously defaulted loans back in good standing.

“I applaud the Department of Education for their efforts to help educate borrowers about returning to repayment and prevent borrowers from inadvertently going into delinquency. This report shows that the new repayment plan and temporary relief options the Department offered, such as Fresh Start, worked. It’s crucial that the Department continue to do everything it can to keep borrowers informed and supported as they continue making loan payments. We need to ensure that borrowers are not just viewed as numbers in a system, but are real people with real challenges that can prevent them from making on-time, monthly payments,” said Ranking Member Scott.

Looking ahead, the Department plans to keep borrowers informed about the conclusion of these temporary relief options and ongoing resources to make progress on repaying loans. This report also serves as a crucial reminder of the ongoing support needed for borrowers navigating federal student loans in this post-pandemic landscape.

To read the full report, entitled, “Federal Student Loans: How Education Has Communicated with Borrowers about Resuming Payments," click here.

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