Student Loan Servicers Understaffed as Borrowers Prepare to Restart Payments

Student loan servicers are facing reduced staff as 44 million borrowers prepare to resume payments later this summer.
The lack of funding for customer service in the industry can be traced back to a denial of increased funding for the Federal Student Aid (FSA) office by Congress last year.
The Education Department has announced multiple initiatives to make the transition easier for borrowers, including reforming the income-driven repayment (IDR) system.
A lack of staff for customer service could start a ripple effect of negative consequences throughout the whole system.
The Department of Education needs to start encouraging borrowers now to be proactive about their student loans to avoid a backlog when payments resume.