October 12, 2023

Gallego Questions Department of Education on Student Loan Repayment Issues

WASHINGTON, DC – Today, Rep. Ruben Gallego (AZ-03) sent a letter to Secretary of Education Miguel Cardona seeking answers regarding issues with the resumption of student loan repayments. The letter follows reports that administrative errors and inadvertent use of outdated servicer formulas have led to inaccurate repayment amounts, incorrect monthly payment information, and borrowers receiving files with missing and incorrect information.

In the letter Rep. Gallego writes:

On behalf of 917,300 borrowers in my home state of Arizona, I request the following information:

  1. How many borrowers have been affected by miscalculations?
  2. How many applications are yet to be processed?
  3. What steps is the Department taking to address miscalculations in the rollout of the Administration’s SAVE Plan?
  4. What technological tools are the Department leveraging to address data discrepancies?
  5. How is the Department partnering with servicers to ensure that they are meeting their obligations to borrowers?

To help Arizona borrowers navigate the resumption of student loan repayments, Rep. Gallego has compiled a resource guide on his website. He also hosted a webinar last year to help Arizonans take advantage of changes to the Public Service Loan Forgiveness Program.

Last year, he also held a roundtable with Arizona students to better understand their struggles with student debt and the impact of student debt forgiveness.

Full text of the letter can be found HERE.