A new report from the U.S. Government Accountability Office (GAO) says the U.S. Department of Education stopped conducting certain oversight reviews of companies that manage federal student loans, raising concerns about the accuracy of borrower records and the quality of information provided to millions of Americans.
The watchdog investigation found that the department’s Office of Federal Student Aid (FSA) halted several monitoring activities in February 2025, including checks on loan servicers’ data and reviews of recorded customer service calls with borrowers.
The GAO warns that without these reviews, errors in loan records could go undetected and potentially affect borrowers’ repayment status or billing amounts.
Oversight Reviews Were a Key Safeguard
Under existing contracts with loan servicing companies, the Office of Federal Student Aid is expected to conduct quarterly assessments of servicers’ records. These checks typically involve comparing servicer data with the department’s own records to identify discrepancies.
The process also includes targeted reviews of borrowers in specific situations, such as those seeking temporary payment relief or adjustments to their repayment plans.
According to the GAO report, these oversight measures were discontinued because of limited staffing capacity within the agency.
Staffing Cuts Cited as a Major Factor
The report notes that staffing levels within the Office of Federal Student Aid dropped significantly during 2025. At the start of the year, the office had 1,433 employees. By the end of the year, that number had fallen to 777—representing a reduction of about 46%.
The decline occurred as the administration of Donald Trump implemented broader workforce reductions within the Education Department.
GAO investigators say the reduced staffing levels contributed directly to the decision to suspend the more labor-intensive oversight reviews.
Lawmakers Requested the Investigation
The investigation was requested by senior lawmakers on congressional education committees, including Bernie Sanders, a U.S. senator from Vermont, and Bobby Scott, a member of the U.S. House of Representatives from Virginia.
Sanders criticized the decision to stop the reviews, saying borrowers could face greater difficulty understanding their repayment obligations.
More than 43 million Americans currently hold federal student loan debt, making the reliability of loan data a major issue for borrowers across the country.
Education Department Defends Its Approach
In a written response included with the report, acting FSA chief operating officer Richard Lucas acknowledged that the reviews had stopped but said the agency had adopted other methods to monitor loan servicers.
Those measures include analyzing borrower satisfaction surveys and other performance metrics to assess how servicers handle customer interactions.
However, GAO officials say those alternatives do not directly verify whether borrowers are receiving correct information or whether loan records are accurate.
Past Reviews Found Accuracy Problems
The last oversight review conducted before the changes revealed that four of the five major loan servicers failed to meet federal accuracy standards. Some companies received financial penalties as a result.
Separately, the department’s independent financial auditor reported in early 2026 that the Education Department still had a “material weakness” related to the reliability of its student loan data.
The GAO recommends that the Office of Federal Student Aid restore the discontinued oversight activities to ensure that borrower records remain accurate and that customer service provided by loan servicers meets federal standards.
