“The vast majority of the everyday work done on federal student loans is actually done by loan servicers and vendors. As you mentioned or your prior guest mentioned, the terms and conditions of the loans are set in statute and federal regulations. Most things would not impact borrowers, but of course, anytime you move a really big portfolio from one place to another, there could be delays,” says Betsy Mayotte President of The Institute of Student Loan Advisors.

“I’ve had a lot of borrowers be like, ‘Oh my goodness, my credit just dropped, and I wasn’t paying any attention to my student loans until I saw my credit score start to drop,’” said Betsy Mayotte, founder of the Institute of Student Loan Advisors.

“Borrowers need more help, not less,” Mayotte said. “The word ‘overwhelmed’ comes up [from them] all the time.”

Mayotte said the staff layoffs at the Department of Education are the biggest hardship for borrowers for now.

She said regardless of the agency overseeing federal loans, the terms of those loans are set by federal statute and will not change.