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Published: April 2019

ED’s staffing shortage creates problems for struggling borrowers

A coalition of legal aid, civil rights, consumer advocacy, public interest, and veterans organizations wrote to Secretary DeVos to demand that the U.S. Department of Education take immediate steps to address the ongoing, unprecedented, and system-wide problems and delays currently plaguing its default servicing system.The disruptions could delay struggling borrowers from getting back on track with their student loans through loan rehabilitation.

A chronic staffing shortage is causing thousands of student loan borrowers and their advocates to experience dropped calls and hours-long wait times when trying to communicate with the Default Resolution Group and Debt Collection Management System, the Department of Education’s default loan servicing system. That means borrowers who are severely behind on their student loan payments may find it harder to reclaim their refunds or stop the federal government from garnishing their wages or Social Security.

Other Organizations

Association of Young Americans (AYA) | Clearinghouse on Women's Issues | Consumer Action | Generation Progress | Hildreth Institute | Housing and Economic Rights Advocates | Legal Aid Foundation of Los Angeles | Maryland Consumer Rights Coalition | National Association of Consumer Bankruptcy Attorneys (NACBA)|National Association for College Admission Counseling | National Association of Consumer Advocates | National Consumer Law Center (on behalf of its low income clients)|National Student Legal Defense Network | National Urban League | OCA - Asian Pacific American Advocates | PHENOM (Public Higher Education Network of Massachusetts) | Southern Poverty Law Center | Student Debt Crisis | Veterans Education Success | U.S. Public Interest Research Group (USPIRG) | UnidosUS | Woodstock Institute

More Information

Click here to read the letter in full.

For more information, please visit NCLC's website.

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