The Student Debt Crisis Center (SDCC), which circulated the petition, says the Department of Education has failed borrowers through delays and account errors, denied forgiveness to eligible applicants and made repayment less affordable. It also cites the announced end of the Saving on a Valuable Education (SAVE) plan and the resumption of interest on SAVE loans. Dozens of Democratic lawmakers pressed Education Secretary Linda McMahon last week to respond to concerns about the department’s handling of the loan system.
“Amid an affordability crisis and the current state of affairs, student loan payments should be the last thing on anyone’s mind,” the petition says. In a statement, SDCC founder and president Natalia Abrams argued that a pause would give more than 43 million borrowers room in their paychecks to cover bills and care for their families.
The Federal Reserve Bank of New York reported that outstanding student debt was about $1.66 trillion in the third quarter of 2026, the second-largest category of household debt after mortgages. Federal Student Aid has said more than 42 million people hold federal student loans, with the government-managed portfolio exceeding $1.64 trillion.
Separately, around 20 advocacy groups wrote to Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, both New York Democrats, urging them to seek legislation pausing repayments. The groups said the system was in worse shape than before the COVID-era payment suspension, which ended in 2023, and called a pause necessary until the Education Department can ensure it is functioning as required by law. Schumer and Jeffries previously backed legislation that effectively barred the Biden administration from extending that pandemic-era pause.
The Trump administration has moved to resume collections on defaulted loans, including plans to seize tax refunds and garnish wages. It also announced that interest would resume on SAVE-plan loans and later said it planned to end the program. Involuntary collections, including wage garnishments, have twice been delayed amid public opposition. As of September, more than 9.3 million borrowers were in default, owing about $234 billion.




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