GAO: FSA Halted Student Loan Servicer Reviews
The College Investor Audio Show · The College Investor
Audio is streamed directly from the publisher (episodes.captivate.fm) as published in their RSS feed. Play Podcasts does not host this file. Rights-holders can request removal through the copyright & takedown page.
Show Notes
The federal government quietly stopped independently checking whether student loan servicers are keeping accurate borrower records (and stopped monitoring the quality of calls with borrowers) in February 2025. More than a year later, it still has not resumed those reviews, according to a new report released by the Government Accountability Office.
The findings come at a precarious moment for the nearly 43 million Americans with federal student loans. Major repayment plan changes are underway, millions of borrowers are in or approaching default, and the very oversight designed to catch servicer errors has gone dark.
For an administration that is allegedly focused on reducing waste and fraud, it's concerning that government contractors overseeing a trillion dollar portfolio of loans impacting 43 million Americans are not being closely monitored or held accountable.