The Office of Federal Student Aid faces a “colossal undertaking” as it prepares to resume student loan payments after an unprecedented three-year pause, and funding constraints could hamper that effort, student loan experts say.
Experts and advocates are worried that the agency, without adequate funding, won’t be able to provide the necessary support to ensure that millions of borrowers don’t end up in default once payments resume. Congress didn’t give the agency more money this year, leading to department budget cuts that have student loan servicers cutting call center hours and laying off staff. Those reductions come at a time when experts say more staff are needed.
