Cardona Proposes Next Steps to Improve Student Loan Administration

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According to a letter sent by Education Minister Miguel Cardona earlier this month, the Education Ministry plans to continue reforming the management of the student loan program, based in part on proposals from two Democratic senators.

Cardona told Senate Majority Leader Chuck Schumer, a New York Democrat, and Senator Elizabeth Warren, a Massachusetts Democrat that the department will work in the coming months to improve targeted debt relief, address student loan servicing and debt collection, and strengthen oversight and control of both for institutions and for accreditation agencies.

“I look forward to continuing to interact with you and your staff on these issues while we pursue these issues,” Cardona wrote. “The actions we take in the coming months will be an important down payment to the approximately 45 million Americans who have federal student loans. But the department cannot solve all these problems on its own. “

Both Schumer and Warren spoke openly about student debt problems during Biden’s first year. Both urged the president to unilaterally write off the $ 50,000 per person student loan debt, while Warren focused particularly on the need to improve the administration of the student loan program.

Cardona spoke about the actions taken by the department so far, including the expansion suspension of student loan payments, issuing student loans for $ 1.5 billion for borrowers who were defrauded by their institutions and started agreed rulemaking process write new rules on issues related to Section IV, which covers most student assistance programs.

Warren appears to be pleased with the department’s progress – she turned down the vote to nominate James Kwaal as Deputy Secretary of Education, the highest position in the higher education department. Sumer announced the end of Kwaal’s nomination last Wednesday and will be considered by the full Senate on September 13 when he returns from recess.

“I had productive conversations with Mr. Kwaal, the Department of Education and the White House, and I am delighted that they are committed to significant reforms in the management of the student loan program,” Warren said. “I look forward to continuing to work with them as these changes are implemented.”

Representatives of the higher education community supported Kwaal’s nomination. After scheduling a vote, the American Board of Education tweeted that Kwaal is a “highly qualified candidate” who “warmly supports”.

“We look forward to the national leadership of James Kwaal as US Undersecretary of Education,” tweeted Martha Kanter, CEO of College Promise and former deputy secretary in the Obama administration. “Glad his confirmation is scheduled!”



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