'A bunch of red tape': Student-loan borrowers can't get clear answers from the companies that manage their debt
Student-loan borrowers are reporting significant difficulties in obtaining clear information from loan servicers, including long wait times and conflicting guidance. Despite government oversight, many borrowers feel the current system is opaque and hinders their financial planning.
Why it matters
It underscores the administrative challenges and consumer protection issues facing millions of Americans managing student debt.
Student-loan borrowers describe challenges getting information from their servicers' customer service. Getty Images; Alyssa Powell/BI Student-loan borrowers said they're facing challenges getting clear information from their servicers. Some have faced long hold times, while others received conflicting payment information. The Education Department said it closely monitors servicer performance. Jessica Salmi waited nearly an hour on hold before her call was disconnected. Jason Marques' servicer can't say if his next student-loan payment will be $100 or $633. Robin Binkley is struggling to find out which repayment plan she qualifies for. As millions of borrowers navigate President Donald Trump's sweeping student-loan repayment overhaul , which took effect on July 1, dozens have told Business Insider they're struggling to get clear answers from the companies that service their loans. They described long hold times, disconnected calls, and conflicting or incorrect information.
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