FOR IMMEDIATE RELEASE
Contact: Allie Arcese
Director of Communications
WASHINGTON, D.C., MAY 8, 2023 — Federal student loan borrowers and servicers are approaching the edge of a cliff, as monthly repayments are slated to resume in the coming months — and a significant amount is at stake for all involved, including the financial aid community.
After more than three years, the federal government, largely through federal student loan servicers, must be prepared to handle an influx of queries from the more than 40 million borrowers transitioning back into repayment, some of whom may have never made a student loan payment before. Meanwhile, colleges and universities need to find effective ways to communicate with borrowers to help prepare them for the repayment pause to end, and also need to prepare for their own impacts, such as how the pause will affect accountability metrics.
The National Association of Student Financial Aid Administrators (NASFAA) convened a task force of financial aid practitioners to develop a report of informed considerations for how schools can assist borrowers in preparing to resume or begin repayment, as well as how schools can prepare for potential operational and accountability impacts. Along with the report, the task force created the Student Loan Repayment Toolkit, both of which were published today.
The report and toolkit include a number of tips and resources for financial aid practitioners, institutions, and borrowers, including:
A step-by-step guide for borrowers to prepare for successful student loan repayment, including an outline guiding borrowers through selecting the right repayment plan
Helpful resources and other programs to help with student loan debt
Suggestions for how institutions can best communicate with borrowers about how to successfully navigate the sometimes confusing onramp to repayment
Institutional considerations for collaborating with other campus offices, community-based organizations, or other third-party partners to amplify outreach to borrowers
Recommendations for how financial aid offices can ensure institutional leaders are aware of potential operational and accountability impacts
“Communication leading up to the resumption of student loan repayments over the next several months will be key to ensuring borrowers are set up for success,” said NASFAA President and CEO Justin Draeger. “After more than three years without having to make any payments, borrowers will not only be out of the habit of making payments, they may not have yet reworked their budgets to accommodate monthly student loan payments. Transitioning millions of borrowers back into repayment cannot happen at the drop of the hat, and financial aid professionals need to be prepared to play their key part in helping prepare and educate borrowers about the many options available to them to repay, defer, or lower their monthly payments, so that when the time comes, borrowers can successfully manage their student loan payments.”
NASFAA policy experts are available to speak to members of the media about the resumption of federal student loan repayment. To set up an interview, please email NASFAA Director of Communications Allie Arcese or call (202) 785-6954.
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 29,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 undergraduates in the U.S. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators.
Publication Date: 5/8/2023