Insider Q&A: What's next for student loans in the COVID era

NEW YORK (AP) — Before starting advocacy group the Student Borrower Protection Center, Seth Frotman was the Student Loan Ombudsman at the Consumer Financial Protection Bureau. That's effectively the federal government's point person for student loan issues.

Frotman held that position until 2018, when he resigned to protest the Trump administration's handling of student loans and private servicing companies.

Frotman spoke to The Associated Press about the Biden administration's decision to extend the student loan repayment moratorium and other issues facing the $1.5 trillion industry.

This interview has been edited for length and clarity:

Q: President Biden extended the moratorium on student loan repayments until January 31, 2022. Why is it a good thing?

A: It would have been a catastrophe if we had turned payments back on so soon into the recovery. It’s important to remember how many student loan borrowers were being crushed by the system before the virus. One in 4 were behind on their payments. Millions were struggling to pay their student loan bill as well as put food on the table. In the most simple of terms, student borrowers have too much debt and this administration needs to get to the root of the problem before asking borrowers to repay.

Q: What do you mean by that?

A: One example is the Public Service Loan Forgiveness Program. Millions of borrowers have really important protections that could eliminate their debts entirely if they did public service. It was a promise made by Washington if you were able to give back to our country or served in the military that your debts would be wiped away. Millions have fulfilled their end of the bargain, but nine out 10 applicants get denied.

The Pennsylvania Higher Education Assistance Agency (also known as FedLoan) had...