Today, Education and Labor Committee Republican Leader Virginia Foxx (R-NC) issued the following statement after the Department of Education announced it will end contracts with its Private Collection Agencies (PCAs):
“The Department’s action is yet another example of putting the preferences of its progressive allies over the needs of struggling student borrowers. For months, the Department has continually left PCAs, defaulted borrowers, and Congress in the dark on its plans for resuming repayment despite continual requests for clarity. Now, after receiving zero guidance and nearly two years of waiting, the Department has decided to put PCAs out of business permanently. It’s clear the Department has worked in bad faith with its supposed partners at the expense of struggling borrowers it claims to care about.
“Given this administration’s track record, I can only assume the Department spent more time drafting its press release than putting a plan in place to assist the millions of current and future borrowers who no longer have means for financial recourse. This will have real consequences for real people, and there will be no one to blame but Secretary Cardona and Richard Cordray.”