FOR IMMEDIATE RELEASE
September 29, 2023
Contact: Sabrina Calazans (SDCC)
STATEMENT: Student Debt Crisis Center Urges Biden Administration to Enact New Payment Pause on Federal Student Loans with a Government Shutdown Looming
(Washington D.C.) – As the U.S. Government heads towards a shutdown, we are extremely concerned about this day coinciding with student loan payments resuming. This will cause drastic consequences for more than 43 million student loan borrowers nationwide. The Student Debt Crisis Center (SDCC) urges the Biden Administration to enact a new payment pause on federal student loans.
The Department of Education is scrambling to prepare for federal loan payments to turn on and to support borrowers with limited staffing and resources. Leaving borrowers to rely on their loan servicers for information and guidance is a known recipe for disaster. October 2023 will mark the first time in more than 3 years since most borrowers made monthly payments and many will be making their first payment [ever]. The Department of Education is not prepared to support new or existing borrowers.
With less than 36 hours until the government officially shuts down, Congress is not any closer to reaching a deal. The deals that have been presented include major cuts to the Department of Education’s budget. These cuts will gravely harm borrowers and leave them in the current scenario indefinitely; lacking support, servicer accountability, and a trustworthy source of information. Over 32,500 borrowers have signed our petition calling for Congress to not cut the Department of Education funding.
A government shutdown on the same day as more than 43 million student loan borrowers have their payments turned on is truly a worst-case scenario. We strongly encourage the Biden Administration to enact a new pause of federal student loans should the government shut down. We are committed to supporting borrowers and uplifting their stories to bring meaningful change, but borrowers deserve and need support, now more than ever.
Student Debt Crisis Center (SDCC) is a non-profit organization centering the needs and voices of borrowers and partnering with allies to impact public policy and end the student debt crisis. The center works directly with borrowers to help them navigate the bewildering and frustrating loan repayment system and advocates for lasting and meaningful change. It leads a people-powered movement representing over 2 million supporters. Learn more at www.studentdebtcrisis.org and follow SDCC on Twitter at @DebtCrisisOrg.