3 big reasons to worry as the government starts collecting defaulted student loans

That’s what happened when regular student loan payments resumed in 2023. The deluge of callers looking to arrange payment plans and iron out paperwork issues swamped servicers’ capacity to handle them, leading to hours-long waits on the phone. Betsy Mayotte, head of The Institute of Student Loan Advisors, said she is worried that as borrowers in default rush to deal with their loan issues, there could be another “overload to the system” that delays their ability to sign up for rehabilitation.