WASHINGTON, DC — As the U.S. Department of Education (Department) considers a plan to extend the current student loan payment pause and interest moratorium –currently set to expire on September 30 – the American Fintech Council (AFC) is urging the Administration to target any further extensions to benefit borrowers in financial distress.

AFC CEO Garry Reeder released the following statement:

“As the Department of Education considers when and how to restart federal student loan repayments, we urge the Department to take a needs-based approach that focuses on relief to distressed borrowers and provides a clear, convenient path back to repayment for those who can afford it. For borrowers who can afford it, an imminent return to repayment enables them to plan for the future and improve their financial lives by reducing their loan balances. We also encourage the Department to work with loan servicers to quickly develop a self-certification process that allows distressed borrowers still recovering from the financial impact of the COVID-19 pandemic to defer payments and interest in three-month increments. Blanket repayment relief costs taxpayers $5 billion a month – none of which should be used to subsidize borrowers who are able to pay. Americans deserve an approach that provides relief to those in need, restarts repayment for those who can meet their obligations, and minimizes the cost to taxpayers.”