Federal Student Loan Problem Debtors Facing Disarray

It is reported that consumers are facing hours on hold and being dropped when trying to deal with a human at the Department of Education departments that handle loans in trouble.

Adam Minsky wrote in Forbes, “The U.S. Department of Education’s internal unit that handles defaulted federal student loans is in complete disarray. A chronic staffing shortage is causing borrowers and their advocates to experience unprecedented, hours-long wait times – sometimes ending in dropped calls. This means that hundreds of thousands of student loan borrowers may be unable to reach anyone to help them to stop wage garnishments, tax refund seizures, or Social Security offsets. Other student loan borrowers seeking to access critical default relief programs like rehabilitation may be effectively trapped in default due to the Department’s inability to function.”

Minsky also said, “An employee who works for DRG/DMCS told me that the problem is related to staffing shortages, coupled with high-volume calls during tax season (since people’s federal tax refunds are often seized when they have defaulted federal student loans). But the problem is completely unprecedented and has now been persisting for over two months – and the Dept. of Education has not acknowledged the problem publicly, or made any plans to address this.”

Given the total lack of customer service focus or consideration for student loan debtors by the DeVos Department of Education, I’m not shocked at all.

Steve Rhode
Get Out of Debt GuyTwitter, Facebook

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This article by Steve Rhode first appeared on Get Out of Debt Guy and was distributed by the Personal Finance Syndication Network.

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