Dozens of national organizations and state student loan ombudspersons warned Congress and the Education Department that cascading problems impacting federal student loans are quickly spiraling out of control, and borrowers are paying the price. The groups demanded immediate action by Secretary of Education Linda McMahon, and called for emergency congressional hearings to investigate the worsening crisis.
“We, the undersigned 89 organizations representing millions of students, borrowers, workers, veterans, people of color, people with disabilities, and consumers write to sound the alarm on the unprecedented levels of confusion, misinformation, servicing errors, and administrative failures that millions of student loan borrowers are being forced to navigate as implementation of the One Big Beautiful Bill Act continues,” wrote the coalition of groups in their letter to congressional leaders on Monday. “We urgently call for your respective committees to engage in critical oversight and convene an emergency hearing in order to protect borrowers and hold the U.S. Department of Education and its student loan servicers accountable.”
