That's because Congress essentially froze the Education Department's funding for 2023. But, right now, they need to help 39 to 40 million - and do it with less money than usual. In normal times, the handful of companies that service federal student loans have to help a few million borrowers a year move into repayment. Making matters worse, several of the largest servicers ended their contracts during the pandemic, forcing a tidal wave of borrowers and their records onto other servicers.įinally, there's the sheer, overwhelming math of it all. "What you're hearing is what we're seeing as well," Chopra told me in a recent interview.Īnd what I'm hearing, I told Chopra, is frustration from borrowers like Steve Kalke, in Houston, who wants to know, "Why does it take so long for my loan servicer to respond or to approve my documents or to really get any answers back to me in a timely manner?"Ĭhopra says, not only are borrowers having to wait for answers, "we're seeing that many borrowers are struggling to even get through to their servicers."įor one, the system is more complex than ever, with the Education Department and servicers rolling out a new repayment plan at the same time the department is doing an unprecedented review of borrowers' records and adjusting millions of accounts. The Consumer Financial Protection Bureau (CFPB) and its director, Rohit Chopra, are watching loan servicers closely, collecting data on how much time borrowers spend on hold - and how many simply give up before they even get through. Early signs suggest that the companies the government pays to answer those questions are struggling, as borrowers flood their phone lines. Millions of Americans are getting ready to repay their federal student loans next month, and many have questions – from where to get started online to what repayment plan is right for them.
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