HARTFORD, Conn. — Over a million student loan borrowers may be seeing duplicate loans on their accounts, which could lead to difficulty borrowing for other future loans if the issue is not resolved, U.S. Senate leaders are warning.
U.S. Sen. Richard Blumenthal addressed borrowers at UConn Hartford on Thursday, calling on student loan servicers to fix loan accounts that have their balances appearing twice, as well as the other application delays and billing issues.
"These types of errors are unjustifiable," Blumenthal said.
These issues come after millions of student loan accounts were transferred to new private loan servicers over the past few years, according to the letters U.S. Senators sent to student loan servicers and credit reporting agencies. As many as 1.4 million student loan accounts may be seeing duplicate balances.
"When there are double balances with a credit report agency for student borrowers, it means they may be unable to borrow for a car purchase or a mortgage, or graduate school loans," Blumenthal said.
Blumenthal joins other U.S. Senators, including Sen. Elizabeth Warren (D-MA), to investigate the errors and demand servicers like MOHELA and NelNet and credit reporting agencies Experian, Equifax, and TransUnion to stop "pointing fingers" at each other for the blame and provide an immediate remedy for borrowers.
This comes as a federal appeals court blocked the SAVE program earlier this summer, meaning millions of loan repayments have been placed in forbearance.
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