Deputy Treasury Secretary Remarks On Student Loans Include Focus On Delinquent Borrower

Student Lending Department of Treasury

On September 29, Deputy Treasury Secretary Sarah Bloom Raskin delivered remarks on student loans and their macroeconomic consequences at the National Association for Business Economics. With over $1 trillion in outstanding student loan debt, the U.S. has the highest level of student loan debt when compared to any country in the world. Deputy Treasury Secretary Raskin indicated that student loans surpassed credit cards and auto loans as the largest source of unsecured consumer debt. Recognizing that student loan debt is not inherently bad, Deputy Treasury Secretary Raskin emphasized that its impact on the economy cannot be understood without considering both the economic and societal benefits of a more educated workforce. Deputy Treasury Secretary Raskin expressed concern that student loan debt has become a “serious burden for far too many borrowers,” noting that student loan delinquency and default could undermine the country’s economic growth by “crowding out other kinds of investment.” She commented on the number of complaints and testimonials reported by distressed borrowers and advocated for “accuracy and fairness in the loan servicing industry, and transparency and disclosure for borrowers in the loan process.”