Urgent Call to Conduct Oversight Comes as Borrowers Face Massive Payment Spikes and System Chaos Amidst Worsening Affordability Crisis
September 22, 2026 | WASHINGTON, D.C. — A broad and diverse coalition of 89 national and state labor unions, civil rights organizations, consumer protection groups, and student and borrower advocates sent an urgent letter to committee leaders of the U.S. Senate and House of Representatives with jurisdiction over federal student loans and student loan servicers, demanding an emergency hearing. The letter urges the committees to examine the chaos and confusion borrowers have faced over the last year, especially as the Trump Administration implements unprecedented cuts to financial aid and student loan repayment programs under the One Big Beautiful Bill Act (OBBBA). Advocates included an addendum to their letter with borrower stories from the campaign, which can also be found here.
The letter comes as the U.S. Department of Education (ED) has backed away from critical oversight of its student loan servicers and reduced its own staffing in key offices responsible for supporting borrowers facing challenges. At the same time, the Trump Administration has continued its quest to dismantle the Consumer Financial Protection Bureau and deprioritized supervision and oversight of the student loan industry more broadly. The letter details a long series of unacceptable servicing failures and errors that borrowers have been forced to navigate on their own, making it harder for them to budget and plan financially.
From the letter:
“All of these changes are happening at the same time as millions of Americans—including those with student loan debt—navigate a worsening affordability crisis. As a result, student loan distress is hitting record levels as borrowers attempt to budget for spiking payments and traverse a new and chaotic system. This dynamic threatens to further compound an unprecedented default crisis. A startling 25 percent of student loan borrowers are now behind on a student loan with more than 9 million—or 1 in 5—borrowers now in default. Delinquency rates are even higher for Black and Native American borrowers, reaching nearly 50 percent for these groups and are particularly high for borrowers who had previously received a Pell Grant.”
“Making matters even worse, the U.S. Department of Education (ED) also announced that it would formally terminate the Saving on a Valuable Education (SAVE) repayment plan and force over 7 million Americans into alternative repayment plans earlier than required by Congress. Estimates show that a typical borrower enrolled in the SAVE plan could be forced to pay over $4,000 more per year on their student loans under the new Repayment Assistance Plan (RAP) created under the new OBBBA. Borrowers forced out of the SAVE plan have already begun to report payment spikes of over $500 per month and challenges with keeping up with these skyrocketing payments. If borrowers forced to exit the SAVE plan enter default at the same rate as other borrowers, the total number of student loan borrowers in distress could reach 17 million or more. This unprecedented level of borrower distress is already taking a toll on the finances of millions of families. Over the previous year, borrowers with delinquent student loans have already seen their credit scores decrease by 57 points on average—plunging them into deep subprime territory which will make it harder for them to access affordable credit and even secure employment or housing.”
Earlier this summer, in response to the onslaught of changes, chaos, and confusion among borrowers, advocates launched the “One Big Bill” campaign to elevate the stories of Americans with student loan debt, documenting their spiking student loan bills and other devastating financial consequences from the OBBBA. In the months following, the campaign has collected hundreds of stories from borrowers worried about how they will afford their new student loan bills and their struggles with trying to get help to avoid falling behind.
Further Reading
Read more about the One Big Bill Campaign: “One Big Bill” Story Gathering Campaign Launches to Document the Financial Harm of OBBBA on Working Families With Student Loan Debt
Read Protect Borrowers’ analysis of how OBBBA will burden student loan borrowers with additional taxes: Tax Breaks for Billionaires, Tax Bombs for Borrowers: The “One Big Beautiful Bill” Slams Americans Who Earn Student Debt Cancellation with Thousands of Dollars in Additional Taxes Starting 2026
Read our blog on OBBBA: What Students and Borrowers Need to Know Now that President Trump’s “One Big Terrible Bill” is Law
Read our Deep Dive on OBBBA: Deep Dive: The OBBBA Law Makes Paying for College More Expensive and Risky
Read our report on the broken student loan servicing companies in charge of OBBBA changes: New Report Shows Trump’s Deadline Will Thrust Millions of Student Loan Borrowers into Broken and Corrupt Servicing System
Read our blog on student loan companies: The Student Loan Companies Driving the System Today
Read our blog on SAVE ending: So Much for Saving on a Valuable Education: What Borrowers Need to Know Now That SAVE Is No Longer An Option
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