March 11, 2025

Business Insider: Democrats want to work with Trump's education secretary on one big thing for student-loan borrowers

President Donald Trump's new education secretary might find room for agreement with Democrats on a key issue: making sure student-loan servicers do their jobs.

On Monday night, Democratic Sen. Elizabeth Warren led a group of Democratic lawmakers, including Senate Minority Leader Chuck Schumer and Rep. James Clyburn, in sending a letter to Education Secretary Linda McMahon regarding oversight over the companies that manage millions of student-loan borrowers' federal loans.

"Despite our disagreements, we look forward to working with you where we can find common ground," the lawmakers wrote in the letter, first viewed by Business Insider. "One such area may be accountability for federal student loan servicers."

They specifically pointed to servicer MOHELA, which manages over 7 million borrowers' accounts. New data released by the Department of Education in January showed that MOHELA was the worst-performing servicer based on the three metrics the department measured: customer satisfaction, call wait times, and call abandon rates.

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Read the full article here.


By:  Ayelet Sheffey
Source: Business Insider