Over 14 million student-loan borrowers will resume payments this year under new companies — and that’ll further ‘complicate’ the repayment process, a federal consumer watchdog says
Ayelet Sheffey
June 16, 2023
The student-loan payment resumption is on the horizon — and a consumer watchdog isn’t sure the process will be as seamless as the Education Department wants.
Last week, the Consumer Financial Protection Bureau released a report on the impact the payment resumption will have on borrowers this fall. Payments have been on pause since the start of the pandemic in March 2020, and they’re scheduled to resume in October, with interest beginning to accrue again in September.
While the department has repeatedly said it will work to ensure a smooth transition to repayment, the CFPB report suggested it might not be that easy. According to the report, 44%, or 14 million, student-loan borrowers in the bureau’s sample will have their loans managed by at least one new student-loan company when payments resume, which could “complicate” the process.
