Warren, Senators Press Federal Student Loan Servicers for Data on Customer Service and Performance

Warren, Senators Press Federal Student Loan Servicers for Data on Customer Service and Performance

Investigation follows months of policy whiplash from Trump Administration on student loan repayment

"Borrowers pay the price for servicers' neglect and incompetence."

Text of Letters (PDF)

Washington, D.C. - U.S. Senator Elizabeth Warren (D-Mass.) led Senators Jeff Merkley (D-Ore.), Richard Blumenthal (D-Conn.), Cory Booker (D-N.J.), Ed Markey (D-Mass.), and Chris Van Hollen (D-Md.) in writing to the federal student loan servicers to ensure they are providing borrowers with the customer service they deserve in the wake of the Trump administration's student loan policy whiplash. The senators sent letters to MOHELA, Nelnet, EdFinancial, Maximus, and CRI.

Over the past year, statutory and regulatory policy changes led by the Trump Administration have caused significant financial damage to student loan borrowers, who now face higher loan payments, potential tax increases, the resumption of forced collections, and renewed interest accrual on loans previously in forbearance. As of April 2025, more than three in every ten student loan borrowers are in delinquency, the highest percentage ever recorded and a 50% increase from February.

"Borrowers need quick and clear assistance from federal student loan servicers amidst the chaos and confusion, but servicers have a well-documented history of providing delayed or incorrect information to borrowers or otherwise failing to meet their responsibilities," wrote the senators.

Student loan servicers' history of extensive customer service failures and egregious wait times has compounded the distress of borrowers in need. Administrative errors from student loan servicers have had significant consequences for borrowers, including delayed rent payments, loss of mortgage eligibility, postponed retirement contributions, and even a risk of homelessness.

With the Department of Education decimated by layoffs and repeatedly obstructing Congressional oversight, the Senators asserted that Congress and the public deserve clarity on how student loan servicers are serving borrowers. The Trump administration's plans to transfer loan portfolios from low- to high-performing servicers could also lead to extensive administrative errors, exacerbating financial distress.

"As loan repayment due dates and requirements have changed repeatedly for many borrowers under the Trump Administration, borrowers need clear and timely communication from federal student loan servicers," wrote the senators. "The quality of customer service assistance provided by loan servicers to borrowers is more critical than ever in the wake of the Trump Administration's catastrophic cuts to ED and FSA."

The senators asked for data on the servicers' customer service performance and staff, loan reallocations, and borrower communications by December 22, 2025.

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