Oregon Report Finds Student Loan Borrowers Struggling with Changing Rules

Salem, Oregon- Student loan borrowers in Oregon faced heightened confusion and frustration over the past year as federal repayment and forgiveness programs continued to shift, according to a newly released annual report by the state’s student loan ombuds.

Lane Thompson, who has held the position since it was created more than three years ago, said this past year marked the most turbulent yet for student loan borrowers across the state.

“Because the rules continue to change, it leads to frustration and confusion for both borrowers and servicers,” Thompson said. “The ongoing nature of the changes has compounded these sentiments from borrowers. Forced collections resumed in May, so many borrowers are feeling the potential consequences of their student loan debt for the first time in five or more years. Another change, announced since the report was published, will also result in additional costs for borrowers.”

The report, published by the Oregon Division of Financial Regulation, highlights persistent issues with federal student loan servicing, particularly for borrowers seeking income-driven repayment or forgiveness under programs like Public Service Loan Forgiveness (PSLF). Two key takeaways from the report: loan servicers are difficult to reach, and borrowers most reliant on federal loan benefits—such as low-income individuals, public servants, and people with disabilities—are the most affected by unclear guidance and access issues.

Thompson, whose office provides free assistance to borrowers, expressed optimism about her role in improving oversight and education as federal policies continue to shift.

“The continuously changing rules result in less clear expectations for servicers, and makes regulatory oversight even more crucial. The chilling effect created by federal changes means state regulators are more important than ever,” she said. “Helping people understand their rights and responsibilities is also key.”

In addition to addressing servicing complaints, Thompson’s office plays a key role in protecting borrowers from fraudulent collection practices.

“Scam attempts increase during times of financial upheaval, and one goal of the licensure structure is to help Oregon’s consumers check the legitimacy of collection attempts,” she said.

Thompson reported handling more complaints and engaging in greater advocacy efforts over the past year than ever before.

“Not every state has a student loan ombuds/advocate,” she said. “When there is a lack of clarity at the federal level, state level advocates and regulators can serve as a backstop for borrowers who have issues with the servicing of their student loans. I feel lucky to serve Oregonians in these times.”

Oregonians with questions about their student loans or servicers can contact Thompson’s office at 888-877-4894 (toll-free) or email dfr.bankingproducthelp@dcbs.oregon.gov. Borrowers can also verify the legitimacy of loan servicers at NMLSConsumerAccess.org.