![US Senators including Menendez seek answers from federal loan servicers [Photo: Business Insider]](https://omdnews.com/wp-content/uploads/2023/07/Business-Insider.jpg)
The US Senators requesting information from federal loan servicers to ensure a smooth transition into repayments for millions of federal student loan borrowers.
![US Senators requesting information about student loan payment resume soon [Photo: NewsNation]](https://omdnewsnew.s3-accelerate.amazonaws.com/2023/07/NewsNation.jpg)
US Senators requesting information about student loan payment resume soon [Photo: NewsNation]
Why are US Senators Requesting Information from Federal Loan Servicers?
The US Senators including Menendez are asking for information about the student loans that will resume soon. They sent a letter to federal loan servicers to ask about the steps companies will be taking to ensure the smooth transition into repayments for millions of federal student loan borrowers. The US Senators including Menendez are concerned about the repayments that will resume soon.
Student loan borrowers are set to resume payments starting in October but over the last 3 years, some of the servicers exited the said federal student loan program. Resulting in student loan borrowers being transferred to new servicers. The US senators are concerned because there is a possibility of mistakes in the transfer process including incorrect balances, improper claims of delinquency, and revised amortization schedules.
The US Senators wrote about the very alarming because according to the Wall Street Journal, more than 7 million student loan borrowers have not yet been assigned to a payment plan. Most student loan borrowers have graduated and are no longer enrolled. There is trouble locating and contacting these borrowers ahead of the payment resumption. That is why US Senators requesting information about this issue from federal loan servicers. They wanted an answer no later than August 1, 2023.
