GAO: FSA Halted Student Loan Servicer Reviews

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.