Student-loan borrowers are entering a new oversight era
Student-loan borrowers face stalled debt relief, inaccurate bills, and repayment glitches. The blue wave in the midterms could take on those issues.
Following the Democratic Party's victory in the 2022 midterms, lawmakers anticipate the launch of comprehensive oversight over federal student loans. This new era of scrutiny could encompass hearings, investigations, and subpoenas into the Trump administration's policies, notably the dismantling of the Education Department and the implementation of sweeping repayment changes.
Senator Ed Markey of Massachusetts vowed to hold Linda McMahon, the Department of Education's secretary, accountable under oath. The Education Department's recent efforts, such as transferring borrowers to higher-cost repayment plans and resuming involuntary collections for defaulted loans, have prompted concerns about accuracy and borrower protections.
Student Defense, a borrower advocacy group, proposes a curriculum for lawmakers to address key issues, including predatory schools, mismanagement of loan forgiveness programs, and failures in transferring borrowers to new repayment plans. Despite the potential for rapid oversight on certain matters, experts caution that addressing more complex issues may take time.
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