Student Loan Update: Government Watchdog Issues Warning About Major Changes
A GAO report warns a "lack of clear instruction" by the Department of Education is triggering confusion over student loan changes.
A new federal watchdog report has raised concerns over the implementation of major changes to the student loan system under the Trump administration. The Government Accountability Office (GAO) warned that communication breakdowns between the U.S. Department of Education and its loan servicers can lead to billing errors, delays, and confusion for millions of borrowers.
The report specifically examined how the Education Department coordinates with the four companies that manage federal student loans: Nelnet, Aidvantage, MOHELA, and EdFinancial. The GAO found that all four servicers experienced difficulties carrying out program changes due to unclear instructions from the department, resulting in multiple rounds of clarification before updates could be implemented.
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