This group letter urges the Department of Education to take action to protect federal student loan borrowers from harm caused by the SAVE litigation’s large-scale disruption of the student loan repayment system, which has led to a temporary removal of online repayment plan applications and an extended pause in processing applications to consolidate loans or repay using an income-driven repayment plan.
For the reasons detailed in the letter, we recommend that the the Department, at minimum, extend the current borrower protections scheduled to end September 30 for as long as the litigation remains active, and for such time after the litigation is resolved as may be necessary for the Department to implement the challenged regulations and process the backlog of income-driven repayment and consolidation applications that has accrued. This will prevent unnecessary delinquencies and defaults from occurring as a result of disruptions attributable to changing court orders.