"When asked by Democratic Sen. Elizabeth Warren for data on their performances, the major student-loan servicers delivered nearly identical responses - exclusively reviewed by Business Insider - that referred the lawmaker back to the Department of Education's Federal Student Aid office. One servicer, MOHELA, wrote in a January 5 email to Warren that it has "a formal statement that FSA has requested we send.""
"The statement, which the other servicers also sent, stated: "Because your letter requests information and data maintained by the Department's office of Federal Student Aid, we respectfully ask that the request be redirected to the Department via the Office of Legislation and Congressional Affairs." Monitoring student-loan servicers' performance will become more critical this yearas the Department of Education begins implementing its repayment changes that President Donald Trump signed into law in his "big beautiful" spending legislation."
Department of Education has not released student-loan servicer performance data requested by lawmakers. Major servicers responded to Senator Elizabeth Warren by referring the request to the Department's Federal Student Aid office. MOHELA said it had "a formal statement that FSA has requested we send." Servicers provided a statement asking that requests for information maintained by Federal Student Aid be redirected to the Department via its Office of Legislation and Congressional Affairs. Oversight of servicers has weakened after the Trump administration deprioritized enforcement and cut staff at the consumer watchdog. Monitoring servicer performance will be more critical as repayment changes are implemented and borrowers report confusion.
Read at Business Insider
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