New Student Loan Research Brief on How to Help Borrowers Return to Repayment

WASHINGTON, July 18, 2023 /PRNewswire/ -- Education Finance Council (EFC), the national trade association representing nonprofit and state-based higher education finance organizations, announces the release of a new research brief titled, "The Federal Student Loan Knowledge Gap: Exploring What Borrowers Think They Know About Their Education Debt Before Monthly Payments Resume." Pulling together recent survey results and relevant data into one document, the paper provides readers with a fresh perspective on the complicated nature of the federal student aid system. 

"What federal policymakers do over the next few months will dictate how successful borrowers are in readjusting to the new post-pandemic reality. Our research brief presents a clear picture of what families currently understand about their options and highlights just how difficult it is for them to navigate the student loan repayment process," said EFC President Gail daMota. 

"We are pleased to give members of Congress and executive branch officials policy recommendations that will set existing borrowers up for success and ensure future college students are empowered with the information they need to make smarter financial decisions. Nonprofit and state-based student finance organizations' interests are inherently aligned with borrowers, and we urge the Department of Education and Congress to leverage these organizations' expertise as they reform the federal student loan program." 

The research brief reveals the scale of the challenge the federal government faces to help millions of Americans start paying back their student loans again this fall. Ineffectual counseling requirements, student loan servicing transfers to different companies, and erratic repayment and forgiveness developments over the last few years have left borrowers without a clear understanding of how best to repay their education debt.

The brief identifies these and other weaknesses in the federal student loan system before proposing five policy recommendations for the Department of Education and Congress to reform the system for existing and future borrowers.

Background: EFC is the national trade association representing nonprofit and state-based higher education finance organizations that are dedicated to improving college access, success, and affordability in their states and nationwide. Learn more about EFC by visiting efc.org.

CONTACT: Alex Ricci
(202) 552-8500
[email protected]

SOURCE EDUCATION FINANCE COUNCIL