More Big Student Loan Servicing Switches May Happen (Yes, Again)

As borrowers try to navigate new federal student loan forgiveness and repayment programs following the end of the Covid-era forbearance period, loan servicers have struggled.

Understaffed, inadequately funded, and tasked with implementing a wide variety of new Biden administration initiatives, student loan companies contracted with the Education Department to manage the government’s vast portfolio of accounts are under unprecedented strain. Borrowers are contending with long call hold times, processing delays, rampant billing errors, and worse.