Student-loan borrowers are at heightened risk of costly errors when Trump's changes roll out, Democratic lawmakers say

Changes are coming to student-loan repayment, and Democratic lawmakers are warning that it could lead to costly servicing mistakes for borrowers.

On Sunday night, Democratic Sens. Elizabeth Warren, Ed Markey, Jeff Merkley, Richard Blumenthal, Cory Booker, and Chris Van Hollen sent letters, exclusively viewed by Business Insider, to all five federal student-loan servicers regarding their abilities to assist borrowers amid major changes to repayment.

The letters come as servicers are working with the Department of Education to roll out changes signed into law in President Donald Trump's "big beautiful" spending legislation, including creating new repayment plans and borrowing caps. Additionally, collections resumed on defaulted borrowers' student loans after a five-year pause, all while the administration is working to dismantle the Department of Education.

• Print
• Email
• Tweet