Borrowers, including veterans and nurses, say resuming student loan payments will 'crush' families
June 17, 2026 | Senate Committee on Health, Education, Labor, and Pensions, Senate Committees, U.S. Senate, Legislative, Federal
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A series of borrowers spoke about the financial hardship they expect when federal student loan payments resume July 1, describing decades of debt, wage garnishment and mounting monthly bills.
“I make about 20 bucks an hour. I went to school in 1997,” said Resident 1, who described being in and out of default for roughly 30 years and having wages garnished while carrying about $40,000 in loans. “The interest just compounds. It's a worry in the back of your mind constantly.”
A speaker identifying as a Fleet Marine Force corpsman said he used the Montgomery GI Bill but nonetheless faces roughly $96,000 in student debt and expects payments of about $1,300 a month beginning July 1. “We won't be able to afford where we live, worry about putting food on the table,” he said.
Another borrower who retired and said they received a notice from servicer Mohela said they were told payments of $548.98 (also referenced as $542.98 in the segment) would begin in July and said that amount is unaffordable on a fixed income.
“I sold my home, I moved into [an] apartment and now I have high rent, utilities, groceries,” said Resident 3. “I can't see no way that I could pay $542.98 monthly for my student loans.”
A nurse who said she qualified for the Public Service Loan Forgiveness (PSLF) program reported a $65,000 balance and processing delays at the Department of Education that have left her PSLF application behind. She said her payment is set to restart at about $880 per month, up from roughly $400 pre-pandemic.
The opening speaker framed these personal accounts as part of a broader policy dispute, saying a recent federal tax bill prioritized tax breaks for the wealthiest over protections for borrowers and people on Medicaid.
The segment closed with an appeal to address what the speaker called a national crisis. The testimonies did not record any formal vote or administrative decision; they were personal accounts describing existing balances, servicer notices and anticipated payment amounts.
The people who spoke were not identified by full name in the transcript; attributions above use the functional labels given in the meeting transcript (Resident, Veteran (corpsman), Retiree, Nurse, Questioner).
“I make about 20 bucks an hour. I went to school in 1997,” said Resident 1, who described being in and out of default for roughly 30 years and having wages garnished while carrying about $40,000 in loans. “The interest just compounds. It's a worry in the back of your mind constantly.”
A speaker identifying as a Fleet Marine Force corpsman said he used the Montgomery GI Bill but nonetheless faces roughly $96,000 in student debt and expects payments of about $1,300 a month beginning July 1. “We won't be able to afford where we live, worry about putting food on the table,” he said.
Another borrower who retired and said they received a notice from servicer Mohela said they were told payments of $548.98 (also referenced as $542.98 in the segment) would begin in July and said that amount is unaffordable on a fixed income.
“I sold my home, I moved into [an] apartment and now I have high rent, utilities, groceries,” said Resident 3. “I can't see no way that I could pay $542.98 monthly for my student loans.”
A nurse who said she qualified for the Public Service Loan Forgiveness (PSLF) program reported a $65,000 balance and processing delays at the Department of Education that have left her PSLF application behind. She said her payment is set to restart at about $880 per month, up from roughly $400 pre-pandemic.
The opening speaker framed these personal accounts as part of a broader policy dispute, saying a recent federal tax bill prioritized tax breaks for the wealthiest over protections for borrowers and people on Medicaid.
The segment closed with an appeal to address what the speaker called a national crisis. The testimonies did not record any formal vote or administrative decision; they were personal accounts describing existing balances, servicer notices and anticipated payment amounts.
The people who spoke were not identified by full name in the transcript; attributions above use the functional labels given in the meeting transcript (Resident, Veteran (corpsman), Retiree, Nurse, Questioner).
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