Democratic Senators Question Credit Bureaus Over Student-Loan Reporting

The Trump administration cut CFPB staffing by 90 percent, weakening loan-servicer oversight. A 2024 Senate investigation found two of the three bureaus resolved far fewer consumer complaints favorably in 2025 than the 20 percent rate in 2024. Protect Borrowers reported servicers generated billions in unnecessary interest charges and misled borrowers about debt-relief options.

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Over 7 million borrowers must switch to a new repayment plan on July 1 after the SAVE Plan was eliminated. Equifax reports a 99.81 percent accuracy rate in May 2026. CFPB staffing cuts reduced personnel by 90 percent, and the Senate investigation noted a decline in favorable complaint resolutions from 20 percent in 2024 to a lower rate in 2025.

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Inaccurate loan data can raise credit-score calculations, restrict affordable credit and increase interest costs. Rising grocery, utility and healthcare expenses amplify borrowers’ financial strain, especially as the July 1 deadline approaches for those on the SAVE Plan.

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TransUnion said it welcomes engagement with policymakers and will respond. Equifax highlighted its 99.81 percent accuracy claim and a $3 billion cloud investment. Jeff Merkley’s office said letter builds on efforts to codify the SAVE Plan and strengthen protections. Experian did not comment.

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Warren warned that credit-reporting firms’ histories of failing to correct faulty loan data, combined with the dismantling of servicer oversight, could cause errors. Protect Borrowers’ policy adviser Chris Hicks said most servicers fail to meet accuracy standards, leaving borrowers to bear the cost.

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Equifax’s 99.81 percent accuracy claim conflicts with lawmakers’ allegations of widespread reporting errors. The Senate investigation did not disclose the exact 2025 complaint-resolution figure, leaving the decline’s magnitude unclear. Experian’s response remains unavailable.

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• “Credit reporting companies’ histories of failing to correct this faulty credit reporting data provided by servicers, along with the Trump administration’s dismantling of servicer oversight, make it concerningly plausible that these errors may be occurring at a large scale,” — Elizabeth Warren, Senate Banking Committee ranking member

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• “Student loan servicers are failing, and borrowers are paying the price,” — Chris Hicks, Protect Borrowers senior policy adviser

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• “We appreciate the opportunity to engage with policymakers regarding how TransUnion supports consumers. We look forward to responding.” — TransUnion spokesperson

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• “to enshrine the SAVE Plan in law and ensure borrowers have strong consumer protections.” — Jeff Merkley’s office spokesperson

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Bureaus must answer senators’ questions by June 30. Lawmakers plan legislation to codify the SAVE Plan and tighten oversight of loan servicers and credit-reporting agencies. The July 1 deadline for 7 million borrowers heightens urgency to fix reporting errors.

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