NCUA issues letter on resumption of federal student loan payments
NCUA issued a Letter to Credit Unions (23-CU-08) Wednesday on resumption of federal student loan payments. Federal student loan interest resumed Sept. 1, and payments restart in October.
“As federal student loan payments restart, some credit union members may have difficulty meeting their repayment obligations. The resulting increase in total repayment obligations may also negatively impact members’ ability to repay other outstanding loans,” wrote NCUA Chairman Todd Harper. “The NCUA encourages credit unions to work constructively with impacted borrowers and will not criticize a credit union’s efforts to provide prudent relief to borrowers when such efforts are conducted in a reasonable manner with proper controls and management oversight and consistent with consumer financial protection requirements.”
As of June 2023, 43.6 million individuals held a combined federal student loan debt of $1.64 trillion; an average of approximately $38,000 per borrower, according to the Federal Student Aid Portfolio Summary.
NCUA encourages credit unions to consider the following strategies:
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