The Federal Student Loan Landscape

While the U.S. Department of Education (US DOE) cannot officially be closed without an act of Congress, the president’s Executive Orders related to the US DOE and Consumer Financial Protection Bureau (CFPB), coupled with targeted staffing cuts, have significantly affected federal student loan servicing and responsiveness. Also, IF the US DOE is somehow closed, there is conflicting information about what will happen with federal student loans. There are also pending lawsuits challenging the legality of these decisions. While things are changing rapidly, here are a few things to note related to student loans as of March 2025:

• Legally the channels to file applications for student loans and programs through US DOE are mostly still open, so it is still encouraged to file those though it may take a significant amount of time to be processed. Keep detailed records (screenshots, confirmation #s, etc.) of anything you submit.
• The same goes for filing student loan complaints through the CFPB, with close attention to detail (no typos!) since some issues are referred automatically, but recognizing that it may take significantly longer to get resolved (if at all). Again, keep detailed records of everything including dates, contract #s, name of servicer, etc.
• Visit the Illinois Attorney General’s Student Lending page to utilize state-level resources, including the Attorney General’s Student Loan Helpline at 1–800–455–2456. There is also a process to file a complaint here as well.
• Ask your Congressperson for help by filing a case through Constituent Services, the Student Borrower Protection Center has a useful Congressional Casework Tool to help you do just that.

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