When the pause on student-loan payments ends in 74 days, 8 million borrowers will re-enter the system already behind on their bills.
Massachusetts Sen. Elizabeth Warren wants to make sure they don’t lose out on wages and child tax credits as punishment.
On Thursday, Warren led eight of her Democratic colleagues, including Vermont Sen. Bernie Sanders, in sending a letter to Education Secretary Miguel Cardona requesting he remove the default status from 8 million student-loan borrowers automatically. The letter noted that a disproportionate number of borrowers in default are low-income and communities of color, and throwing them back into repayment will only undermine the country’s economic recovery.
