Borrowers Report Payment Errors and Long Hold Times After Student-Loan Changes, as Oversight Reductions Began Earlier

Student-loan borrowers reported extended hold times, disconnected calls, and conflicting repayment information from their servicers after President Trump's overhaul took effect on July 1. Jessica Salmi waited nearly an hour on hold before her call disconnected.

Jason Marques, 39, applied for an income-based plan projected to cost less than $100 a month but received a first bill of $633 from Nelnet.

Marques was placed in temporary forbearance after contacting the servicer, yet the $633 payment remains due. Robin Binkley, 38, filed a complaint with Federal Student Aid after spending countless hours over several months trying to determine her repayment options through phone calls and online chats.

Sarah Smith, 35, made a payment to MOHELA that did not appear on the website, and a representative told her she was no longer a client.

Some borrowers received $50 payment estimates even though their actual bills were higher. Binkley said the lack of accurate information prevents her from selecting the most affordable plan while also budgeting for a loan taken out for her daughter's education. Marques called the experience a bunch of red tape and said he wants to repay his loans but finds the sticker shock eye-watering.

Ellen Keast, the Education Department's higher education press secretary, said internal data show hold times and dropped-call rates have remained consistent. She added that the department remains focused on ensuring borrowers receive the highest-quality customer service and that Federal Student Aid leadership regularly meets with servicers to review satisfaction surveys and performance.