Student Loan Repayment Date is Here, Resuming After 3-Year Hiatus
Student loan repayment requirements are set to resume this month, but many borrowers are facing customer service issues with their loan servicers. The resulting chaos has caught the attention of 19 state attorneys general, who argue that borrowers should not be required to repay their debt until these problems are resolved.
In a letter sent to the Department of Education on Friday, the attorneys general expressed their concern about the “serious and widespread loan servicing problems” that have accompanied the resumption of repayments. Complaints have been reported by borrowers who are experiencing long wait times and dropped calls, making it nearly impossible to obtain answers about their loans. The Student Borrower Protection Center has referred to this situation as a “nightmare” for borrowers.
This surge in issues comes as student loan repayments are restarting after more than three years of pause. Some loan servicers opted out of the business during the pandemic, leaving borrowers to deal with new servicers. The attorneys general highlighted problems such as wait times of up to 400 minutes and customer service representatives who lack accurate information in their letter.
According to Persis Yu, the deputy executive director of the Student Borrower Protection Center, “borrowers who reach out to us are having trouble getting through to customer service representatives to find out about their repayment options. Many are waiting several hours on hold and many never reach a real human at all. Those who do get through are getting confusing, and often incorrect information.”
The new loan servicers seem to be ill-equipped to handle the volume of inquiries they are receiving. The attorneys general noted in their letter that these servicers have little to no experience and insufficient staff to address borrower concerns. The Department of Education has not yet responded to the concerns expressed in the letter.
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