'Severe' student-loan repayment problems are mounting, lawmakers say — and they're pushing for answers
After a blue wave swept the midterms, a group of Democratic lawmakers is calling on the Education Department to protect student-loan borrowers.
Democrat lawmakers are pressing the Education Department to address severe student-loan repayment problems, as the issues are growing more prevalent. Sen. Elizabeth Warren and Rep. Ayanna Pressley are among the over 30 Democrats who have written a letter to Education Secretary Linda McMahon concerning the numerous challenges faced by student-loan borrowers during the transition under the Trump administration.
The letter follows up on a request from state ombudsmen to investigate "systemic failures" within the administration of income-driven repayment plans and loan forgiveness programs. State ombudsmen cited examples of incorrect billing, delays in debt relief, and improper interest accrual, which have caused borrowers to incorrectly believe they were on track for forgiveness.
This led them to spend thousands of dollars on payments that ultimately do not count toward forgiveness. The lawmakers are urging the Education Department to respond to the ombudsmen's recommendations, including enhancing complaint-resolution processes and improving loan-forgiveness tracking. They argue that these failures in federal student loan servicing have caused severe and costly problems for American families, despite the administration maintaining that its changes were meant to simplify the repayment system and curb excessive borrowing.
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