U.S. Rep. Ayanna Pressley (D-MA) and U.S. Sen. Elizabeth Warren (D-MA) recently forwarded correspondence to the nine federal student loan servicers, ensuring that borrowers receive accurate and timely debt cancellation information.
The legislators sent the letters following President Joe Biden’s cancellation of up to $20,000 of student loan debt, inquiring about steps the loan servicers are taking to communicate transparently with borrowers.
“We’re putting the servicers on notice,” Pressley said. “It’s imperative that servicers provide borrowers with accurate and up-to-date information on their student loans. Thanks to President Biden’s plan to cancel student debt, millions are now eligible for meaningful student loan debt cancellation, and we need to ensure it is administered efficiently and felt by as many people as possible. Sen. Warren and I want answers.”
Pressley and Warren issued a separate letter to Navient Corporation (Navient) concerning reports alleging Navient is attempting to scam borrowers out of student debt relief by encouraging them to refinance their loans under Navient’s private lender, NaviRefi.
“Following President Biden’s life-changing action to cancel student debt for millions of Americans, Navient appears to be misleading and misinforming student borrowers on their options – potentially keeping borrowers indebted with private loans while federal relief is in sight,” Warren said. “Alongside Congresswomen Pressley, I’m working to ensure federal borrowers receive accurate information regarding student debt cancellation and will continue oversight throughout the implementation of this policy.”
The lawmakers maintain student loan servicers will play a key role in ensuring borrowers receive the relief leading up to and during the implementation of the reforms.