Calls for clear regulatory pathways to ensure safe, affordable financing options for students and families as PLUS programs come to an end

Washington, D.C. (April 29, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies, innovative banks and student loan servicers and providers, sent a letter today to the House Committee on Education and the Workforce regarding its reconciliation package that would sunset the Graduate PLUS and Parent PLUS federal student loan programs beginning in 2026. In the letter, AFC commends the Committee’s work to address the risks of student overborrowing, and advocates for the role of responsible private lenders in building a safer, more sustainable higher education financing system.

“The sunset of the Graduate PLUS and Parent PLUS programs is an important opportunity to strengthen America’s student lending system,” said Phil Goldfeder, CEO of the American Fintech Council. “Responsible private lenders, including innovative fintech providers, need a clear and consistent regulatory environment so they can continue providing students and families with safe, affordable financing options without recreating the pitfalls of the current system.”

AFC's letter highlights the financial risks associated with the existing PLUS programs, citing concerns that their design allows excessive borrowing and places significant long-term debt burdens on students and parents, often without adequate repayment options. With the anticipated transition away from these programs, AFC emphasizes the importance of ensuring that responsible private sector participants are able to effectively step in. AFC recommends Congress focus on three priorities: providing regulatory certainty for private student lenders, facilitating access to fair credit reporting and underwriting data to support safe lending practices, and ensuring competitive neutrality across different types of lenders to promote responsible innovation and affordability.

“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,” said Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC. “We are committed to working alongside Congress to ensure that every student has access to sustainable financing options that promote long-term financial health.”

A standards-based organization, AFC is the premier trade association representing the largest financial technology (Fintech) companies and innovative banks offering embedded finance solutions. AFC’s mission is to promote a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy. AFC members foster competition in consumer finance and pioneer products to better serve underserved consumer segments and geographies.

‍