Senators Raise Concerns Over Student Loan Repayment Challenges

Democratic lawmakers request data from the Education Department amid difficulties faced by borrowers since the resumption of federal student loan payments.

• Federal student loan payments resumed in October after a three-year pause due to the pandemic, leading to a range of difficulties for borrowers.
• Democratic Senators Elizabeth Warren, Bernie Sanders, Richard Blumenthal, and Chris Van Hollen have expressed concerns about the impact of servicer errors on borrowers' credit scores and have requested data from the Education Department.
• The lawmakers have also raised concerns about wage garnishments continuing despite the department's promise to hold off on consequences for those in default.
• Since the resumption of repayments, servicer resources have been strained, leading to errors such as missed and inaccurate billing statements.
• The Department of Education has acknowledged the challenges and mistakes made by servicers and has taken steps to ensure accountability, including withholding payment from servicers failing to meet their obligations.

3 Articles

The Messenger Business Insider CNN