President Biden Heeded the Lawmakers’ Call to Fix Problems with Loan Cancellation Through the IDR Program
WASHINGTON, D.C. – April 19, 2022 – Today, Senator Sherrod Brown (D-OH), Chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, and Senators Dick Durbin (D-IL) and Elizabeth Warren (D-MA) released the following statement after the Biden administration announced it will take action to address problems with debt cancellation under the income-driven repayment (IDR) program.
“This is an important step to ensure the effectiveness of our student loan cancellation programs and to enable low-income borrowers to eliminate their debt so they can buy a home, start a business, and fully participate in the economy,” said the lawmakers. “We will keep working to ensure these programs are not overly complex and fulfill their promise of forgiveness and make it easier for all Americans to afford a quality education.”
Last week, Sens. Brown, Durbin, and Warren sent letters to the Consumer Financial Protection Bureau (CFPB) and Department of Education (ED) to request a review of student loan servicers’ reported mismanagement of the IDR program. Earlier this month, the Senators successfully urged President Biden to extend the pause on federally-held student loan payments.