The Department of Education has reminded colleges and universities of their responsibility in ensuring student loan borrowers fulfill their repayment obligations. Following a suspension during the COVID-19 pandemic, involuntary collections have resumed, affecting over 5.3 million borrowers who have defaulted. Institutions are urged to provide transparent financial information and support to prepare students for successful loan repayment. Education Secretary Linda McMahon emphasized the need for reform in the higher education finance system to alleviate students' debt burdens and improve their market readiness.
For too long, insufficient transparency and accountability structures have allowed U.S. universities to saddle students with enormous debt loads without paying enough attention to whether their own graduates are truly prepared to succeed in the labor market.
The guidance to institutions was sent on the same day the department resumed involuntary collections on student loans, which had been on hold since the start of the COVID-19 pandemic in 2020.
Collection
[
|
...
]