Sumary of Student Loan Default: Elizabeth Warren Claims Abusive Practices For Student Loans:
- Elizabeth Warren is calling out this student loan servicer for abusive practices amid looming student loan default.
- Student Loans In a scathing letter to student loan servicer Maximus, Warren (D-MA) wants assurances that Maximus will protect student loan borrowers when Maximus assumes Navient’s portfolio of 5.6 million student loans when Navient is expected to stop servicing federal student loans by year end.
- Warren has expressed concern that millions of student loan borrowers will default on their student loans if President Joe Biden doesn’t extend student loan relief until later next year.
- Despite her efforts to extend student loan forbearance, the U.S. Department of Education has said there will be no extension of this student loan relief.
- At the same time, Warren has been the leading advocate calling for wide-scale student loan forgiveness for borrowers, including up to $50,000 of student loan cancellation.
- Student loans: “end a history of student loan servicer abuses” While this student loan relief is ending, Warren wants to “end a history of student loan servicer abuses.
- ” Warren specifically called out Maximus, including: Over the past 8 years, Maximus has received more than $800 million from the U.S. Department of Education for managing student loans in default;
- (How to apply for student loan forgiveness during the Biden administration) Warren says Maximus’ track record may raise concerns that student loan borrowers may get “poor service” and “abusive practices”;