89 Borrower Groups Call on Congress for Emergency Hearing on Student Loan Servicing Failures

A coalition of 89 organizations representing students, borrowers, workers, veterans, people of color and people with disabilities has asked Congress to convene an emergency oversight hearing on the federal student-loan system. In a letter, they allege that the Department of Education’s rollout of the One Big Beautiful Bill Act has produced unprecedented confusion, misinformation and servicing errors, including incorrect monthly payment amounts, erroneous past-due notices, mishandled Public Service Loan Forgiveness credits and online-access lockouts.

Experts such as Kevin Thompson of 9i Capital Group and finance commentator Michael Ryan described borrowers being locked out of accounts and seeing qualifying payments disappear. The signatories, which include Protect Borrowers, AFL-CIO, American Federation of Teachers, National Education Association, NAACP and United Auto Workers, urge House and Senate committees to investigate and hold the Education Department and loan servicers accountable.

The administration responded that the reforms aim to simplify repayment and improve accountability, dismissing the critics as partisan advocates. It remains unclear whether congressional committees will schedule the requested hearing.