The problems are creating uncertainty for borrowers attempting to plan their finances, with some unable to determine how much they will owe each month or which repayment plans they qualify for. According to Business Insider, borrowers say the lack of clear communication has made it harder to budget for everyday expenses, retirement, and other financial commitments.
The Education Department maintains that customer service performance has remained stable. According to the same source, higher education press secretary Ellen Keast said internal data indicate that hold times and dropped-call rates have remained consistent, adding that Federal Student Aid leadership regularly meets with loan servicers to review customer satisfaction and performance.
Borrowers Report Inconsistent Information and Payment Uncertainty
Several borrowers told Business Insider they have struggled to obtain accurate answers despite repeated calls and online chats with their loan servicers. Robin Binkley, 38, said she filed a complaint with Federal Student Aid after spending months attempting to understand which repayment options were available to her.
Binkley explained that she also has to budget for a loan taken out for her daughter’s education and wants to identify the most affordable repayment plan. She said she has been unable to receive that information from her servicer despite numerous attempts.
Jason Marques, 39, described dealing with his loan servicer as “a bunch of red tape.” After applying for an income-based repayment plan that was projected to keep his monthly payment below $100, he received a bill for $633 instead. He contacted his servicer, Nelnet, and was placed into temporary forbearance, but said the original payment still appears on his account.
Marques said he cannot afford the unexpected bill while managing his other monthly expenses. Although he described the customer service representatives as knowledgeable, he expressed frustration that borrowers must repeatedly contact servicers themselves rather than receiving proactive updates.
Sarah Smith, 35, reported a separate issue involving MOHELA. After making a payment that did not appear on the company’s website, she called to verify it had been processed and was told she was no longer a MOHELA client. Smith also said the elimination of the Biden-era SAVE repayment plan has made it more difficult to anticipate her future monthly payments.
Oversight Changes Accompany Major Repayment Transition
Concerns about federal student-loan servicers existed before the latest repayment changes. According to Business Insider, the Biden administration previously withheld $7.2 million from MOHELA in October 2024 for failing to send timely billing statements to borrowers and later imposed penalties on other federal servicers for similar issues.
Oversight has since changed under the Trump administration. In April 2025, the Consumer Financial Protection Bureau directed staff to deprioritize oversight of student-loan servicers through an internal memo. A March report from the Government Accountability Office also found that the Federal Student Aid office stopped assessing servicers’ call quality and billing accuracy in February 2025 following staffing reductions at the Education Department.
The GAO reported that four of the five federal loan servicers had failed to meet contractual obligations and faced $850,000 in penalties before those staffing cuts occurred.
The July 1 repayment overhaul introduced new borrowing limits and moved millions of borrowers into new repayment plans. Business Insider previously reported that some borrowers initially received estimated monthly payments of $50 before learning their actual bills would be substantially higher.
For Jessica Salmi, 38, repeated attempts to reach her servicer ended after spending nearly an hour on hold only for the call to disconnect. She said she no longer tries to contact the company because reaching a representative has become nearly impossible.
