The Department of Education halted key oversight of student loan servicers in Feb 2025 due to staff cuts, raising concerns over errors and inaccurate borrower data.

The U.S. Government Accountability Office reports that the Department of Education’s Office of Federal Student Aid halted critical oversight of federal student loan servicers in February 2025, ending quarterly reviews of records and call recordings due to staffing shortages following a 46% reduction in Education Department personnel. This pause raises concerns about inaccurate repayment statuses, billing errors, delayed refunds, and borrowers receiving misleading information, despite FSA’s claim that borrower satisfaction surveys now serve as a substitute. GAO experts argue these surveys do not ensure factual accuracy. Previous reviews found four of five servicers failed to meet accuracy standards, with two facing maximum penalties. A January 2026 audit confirmed ongoing material weaknesses in student loan data reliability, prompting criticism from lawmakers who say reduced oversight undermines accountability and risks government overpayment for poor service.