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.

Another go-to resource for the oversight team: R/Studentloans, the Reddit channel that has become an indispensable gathering place for borrowers looking for advice on managing their debts. Staff would frequently check it in the mornings, former employees said, and ask the moderators to connect them with members dealing with servicer trouble.

”It was a really great relationship because we were all there to do the same thing, which was to make sure that the student loans were working the way they were supposed to,” said Betsy Mayotte, founder of The Institute of Student Loan Advisors and one of the channel’s moderators.

“These are loans that are owed to the federal taxpayer,” said the founder of the Institute of Student Loan Advisors, Betsy Mayotte.