Republicans sent a letter to Education Secretary Miguel Cardona on Tuesday asking for details of the agency’s plans to restart student loan payments this summer.
The letter is requesting answers and documents relating to questions about what steps the Department of Education is taking to prepare for the repayments.
It asks for the department’s overall plan of action for restarting loans, as well as communications between the Education Department and student loan servicers and contract modifications with loan servicers that have happened in the past year, among other things.
The letter was sent by House Committee on Education and Labor Chairwoman Rep. Virginia Foxx (R-N.C.), along with Rep. Burgess Owens (R-Utah), chairman of the Subcommittee on Higher Education and Workforce Development.
Student loan servicers are bracing for trouble with more than 44 million accounts set to get turned back on this summer. Millions of borrowers will make student loan payments for the first time.
The letter highlights that Nelnet Inc., the largest loan servicer for the department, announced a reduction in staff due to a contract modification the Education Department implemented. the lawmakers asked for more information on if these modifications happened with other loan servicers.
The pause on loan repayments is ending as student loan servicers are expected to have reduced staff in the customer service department, which could lead to a more difficult process for borrowers who have questions and delays in other areas.
Scott Buchanan, executive director for the Student Loan Servicing Alliance (SLSA), says the Department of Education had the funds to ensure student loan borrowers are prepared and have the staff they need, but it used the money in other areas. The Department of Education pointed to inadequate funding from Congress when asked about staffing concerns.
Foxx and Owens are giving the Department of Education two weeks to respond to their letter and provide the requested documents.