Millions of student-loan borrowers should double-check their bill amounts, watchdog says

"FSA is missing opportunities to ensure that servicers are providing borrowers complete and accurate information as it implements major statutory changes to student loan repayment options affecting millions of borrowers. For instance, servicers will need to accurately record the transition to new repayment plans for millions of borrowers."

"The report said that discontinuing oversight leaves FSA without assurance that servicers are providing borrowers with accurate information and continuing to meet their contractual obligations. Prior to the staffing cuts, the GAO said that four out of the five major servicers did not meet the department's performance standards and faced $850,000 in penalties."

The Government Accountability Office reported that the Department of Education's Federal Student Aid division stopped monitoring servicer performance in February 2025 due to staffing reductions. This oversight gap removes assurance that servicers provide accurate borrower information and meet contractual obligations. Prior to cuts, four of five major servicers failed performance standards and faced $850,000 in penalties. The timing is critical as the department implements Trump administration repayment reforms in July, including new repayment plans and borrowing caps. These changes require servicers to accurately transition millions of borrowers to new plans, making enhanced oversight essential to protect borrowers from inaccurate billing and repayment status errors.

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