Student Loan Borrowers Face Customer Service Nightmare: Endless Holds, Wrong Info, and No Answers

As the Trump administration's student-loan repayment overhaul takes effect, borrowers are reporting hours-long hold times, disconnected calls, and conflicting information from loan servicers. Many say they cannot get clear answers about their payment amounts or repayment plans, leaving them unable to budget for the future.

The Struggle to Get Through

Jessica Salmi waited nearly an hour on hold before her call was disconnected. Jason Marques' servicer can't tell him if his next payment will be $100 or $633. Robin Binkley is struggling to find out which repayment plan she qualifies for. These are just a few of the dozens of borrowers who told Business Insider they're facing major customer service failures from the companies managing their federal student loans.

Ellen Keast, the Education Department's higher education press secretary, claims internal data show hold times and dropped-call rates have remained consistent. But borrowers say the problems go beyond just getting someone on the phone—they're being transferred between representatives, receiving conflicting guidance, or getting no relevant answers at all.

'A Bunch of Red Tape'

Jason Marques applied for an income-based repayment plan that was supposed to give him monthly payments under $100. Instead, his first bill was $633. After contacting his servicer, Nelnet, he was placed in temporary forbearance, but the $633 payment is still due on his account. "Obviously, I want to pay my student loans back, but just the sticker shock of seeing a $633 bill is eye-watering," Marques said.

Sarah Smith made a payment to her servicer, MOHELA, but it wasn't reflected on their website. When she called, a representative told her she wasn't a MOHELA client anymore. Smith was also affected by the elimination of the Biden-era SAVE plan, which allowed for cheaper payments. "I can't keep changing my life around to try and predict what these payments will be," she said.

Oversight Reduced Under Trump

Problems with federal student-loan servicers are not new. Under the Biden administration, the Education Department penalized servicers for failing to meet contractual obligations, withholding $7.2 million from MOHELA for late billing statements. But under Trump, oversight has been reduced. In April 2025, the Consumer Financial Protection Bureau told staff to "deprioritize" oversight of student-loan servicers. The Government Accountability Office found that Federal Student Aid stopped assessing servicers' call quality and billing accuracy in February 2025 due to staffing cuts.

Four of the five federal servicers faced $850,000 in penalties before the cuts. Now, with Trump's July 1 overhaul transitioning millions of borrowers to new plans, servicers are overwhelmed. Some borrowers received $50 payment estimates despite their actual payments being higher, sparking confusion and frustration.

'You Could Die Waiting'

Jessica Salmi, 38, no longer bothers calling her servicer after spending nearly an hour on hold only to have the call disconnected. "Getting them on the phone to actually talk to a human being is next to impossible," she said. "You could die waiting."

For borrowers like Robin Binkley, the lack of accurate information is a major stressor. "This is a decision that could affect my finances for many years, and I cannot understand why borrowers are expected to make these choices without accurate information or meaningful guidance," she said.