The American Fintech Council (AFC) has lauded recent Congressional actions aimed at revamping the federal student lending program. The premier industry association, which includes responsible fintech companies, innovative banks, and student loan servicers, addressed the House Committee on Education and the Workforce with a letter regarding its reconciliation package. The package plans to end the Graduate PLUS and Parent PLUS federal student loan programs starting in 2026.
Phil Goldfeder, CEO of the AFC, stated: “The sunset of the Graduate PLUS and Parent PLUS programs is an important opportunity to strengthen America’s student lending system.” He highlighted the necessity for a stable regulatory environment to enable private lenders to offer safe and affordable financing to students and families.
The AFC's letter pointed out the financial risks linked with the current PLUS programs, stressing that their structure allows excessive borrowing, consequently burdening students and parents with long-term debt. As these programs are being phased out, the AFC underscored the need for responsible private sector involvement. The council urged Congress to prioritize regulatory certainty for private student lenders, improve access to fair credit reporting and underwriting data, and ensure competitive neutrality among lenders to foster innovation and affordability.
Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at the AFC, remarked: “As federal loan programs shift, it is critical that policymakers create the conditions for a responsible, competitive private lending market that protects borrowers and mitigates risks to taxpayers. We are committed to working alongside Congress to ensure that every student has access to sustainable financing options that promote long-term financial health.”
The AFC, known for its standards-based approach, represents major fintech companies and innovative banks involved in embedded finance solutions. Its mission is to advocate for a transparent and inclusive financial system, support responsible financial innovations, and endorse sound public policies.