The Troubling Impact of Student Loan Servicers' Failures on Borrower Repayment
Student loan borrowers are facing delays and billing errors from loan servicers, with new providers entering the process after three companies exited in 2021. Around 44% of federal student loan borrowers have a new loan service provider, leading to administrative forbearance for some borrowers while errors are corrected. The Department of Education has identified issues such as miscalculated payments, incorrect billing amounts, late or no billing statements, and placing borrowers with pending discharges back into repayment. The Education Department is holding loan servicers accountable and taking steps to improve outcomes for borrowers. Borrowers are advised to update their account information, enroll in income-driven repayment plans, consolidate loans, and be cautious of student loan scams.