Foxx Presses Cardona (Again) on Student Loan Servicing Contracts
WASHINGTON, D.C., July 23, 2021
Today, Republican Leader of the Education and Labor Committee Virginia Foxx (R-NC) sent a letter to Secretary Cardona addressing the heightened importance of ensuring a smooth transition for student loan borrowers impacted by the recent announcements that two major student loan servicers are ending their federal contracts.
In the letter, Foxx writes: “There are now nearly 10 million borrowers who, following an 18 month pause, will return to repayment status with a new servicer. Since your Department is responsible for overseeing this systemic shift for student loan borrowers, you owe these individuals a transparent plan to ensure a smooth transition.” She continues: “Congress, taxpayers, and student loan borrowers are still sitting in the dark. Indeed, [the New Hampshire Higher Education Assistance Foundation Network] cited the increasing uncertainty around the student loan program as the reason for its exit. If ‘business as usual’ was not sufficient, the new normal is unacceptable.”
BACKGROUND: Following the Pennsylvania Higher Education Assistance Agency’s announcement that it will not seek an extension of its federal contract, Republican Leader Foxx wrote a letter demanding answers from Secretary Cardona on his department’s plan for a smooth transition. Since that letter was sent on July 12, 2021, the New Hampshire Higher Education Assistance Foundation Network announced its departure as well.
Click here to read the full letter.