Democratic lawmakers urge Education Department to cancel student debt
More than 60 Democratic members of Congress called on the Education Department to grant debt relief to borrowers already approved under existing programs. The request also seeks an extension of the pause on involuntary collections and a halt to the transfer of defaulted loans to the Treasury.
Democratic lawmakers urged the Education Department to cancel student debt for borrowers who already qualify under existing programs and to stop the planned transfer of defaulted accounts to the Treasury. The lawmakers also asked the department to extend the current pause on involuntary collections, including wage garnishment and seizure of federal benefits.
The request comes as defaults stand at a record high, with 7.7 million borrowers in default and another 3 million in delinquency at the end of 2025.
Background on repayment changes The push occurs less than a month before new repayment rules take effect on July 1. Those rules eliminate the SAVE plan and introduce new repayment options, changes the department says will help borrowers avoid unmanageable debt.
Lawmakers warned that the combination of new repayment terms and the transfer of defaulted loans could increase the number of borrowers in default. They also called for faster processing of income-driven repayment applications and for relief under programs such as Public Service Loan Forgiveness, Total and Permanent Disability discharge, and borrower defense to repayment.
A department undersecretary stated that the upcoming changes will maintain access to federal student loans while preventing borrowers from taking on debt they may be unable to repay. The lawmakers requested details on when involuntary collections might resume and an update on the backlog of pending debt-relief cases.
