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Democratic Senators Demand Servicer Performance Data, Set Dec. 22 Deadline

Lawmakers cite Trump policy shifts plus weakened oversight as factors increasing the risk of costly servicing mistakes.

Overview

  • Sen. Elizabeth Warren led five Democratic colleagues in sending letters to MOHELA, Nelnet, EdFinancial, Maximus, and CRI seeking accountability on borrower support.
  • The senators requested detailed figures on customer service performance, staffing levels, loan reallocations, and borrower communications with responses due by December 22, 2025.
  • Their inquiry follows policy changes tied to President Donald Trump’s recent spending law that create new repayment plans and borrowing caps, as well as the restart of collections after a five-year pause.
  • Citing official data and past findings, the lawmakers noted servicer mistakes and reported that more than three in ten borrowers were delinquent as of April 2025, a 50% jump from February.
  • The senators argue that Education Department layoffs and curtailed CFPB activity weaken oversight, while the department says it plans to expand the ombudsman’s office and develop a common servicing manual.