The Government Accountability Office concluded in a report published July 13 and publicly released Aug. 6 that the U.S. Department of Education repeatedly provided unclear and untimely directions to the contractors that run the federal student loan system, slowing implementation of major program changes and complicating borrower communications.
Key findings and scope
GAO examined change requests the department issued to loan servicers during a period that began in March 2020, when the COVID-19 payment pause started. The review covered 68 change requests to the four companies that manage the federal student loan portfolio. Those servicers told investigators they often had to ask multiple clarifying questions before they could proceed.
The agency documented an instance where a single change request generated six rounds of questions and answers over two months before servicers were able to act. In another case, a servicer said it was given just one business day to revise how borrowers track payments toward loan forgiveness, leaving insufficient time to prepare for borrower inquiries.
Why coordination matters
All four servicers told GAO that earlier engagement — for example, a meeting to walk through new requirements before a formal change request is issued — would speed implementation. Three of the four said early coordination directly accelerated their response time.
- 68 change requests reviewed (March 2020 through the review period)
- 4 servicers under contract for the federal portfolio
- One change prompted 6 rounds of Q&A over two months
| Metric | Value |
|---|---|
| Change requests reviewed | 68 |
| Servicers interviewed | 4 |
| Noted extreme turnaround | One business day for key borrower-tracking update |
GAO recommendation and Education response
To address the issues, GAO recommended that the Secretary of Education instruct Federal Student Aid to create and implement formal criteria governing when staff should conduct early coordination with servicers. GAO said formal criteria would clarify expectations and reduce implementation delays.
"Formal criteria would hinder its ability to respond to shifting administration priorities."
The Department of Education disagreed with the recommendation, arguing that rigid criteria could impede flexibility needed to adapt to changing priorities. GAO, however, kept the recommendation open and said it will continue to monitor the agency's response.
Oversight and political context
The report was produced at the request of lawmakers on congressional education committees during a period of leadership turnover. It was requested by then-Ranking Member Bill Cassidy of the Senate HELP Committee and then-Chairwoman Virginia Foxx of the House Education and the Workforce Committee. By the time the report was released publicly, Cassidy had become chairman of the Senate HELP panel and Tim Walberg had taken over as chairman of the House education committee.
GAO's findings come as the department manages ongoing, high-profile changes to repayment and forgiveness programs that affect millions of borrowers. The documented communication gaps have potential implications for how quickly servicers can implement new rules, update borrower-facing systems and answer borrower questions — all central to the rollout of complex policy changes.
GAO's open recommendation signals continued scrutiny of the Education Department's internal processes and could prompt congressional hearings or further oversight if problems persist. For borrowers, the practical impact can include confusing account statements, delays in crediting payments toward forgiveness and longer waits for customer service answers tied to program changes.
Federal Student Aid and its servicers occupy a critical link between policy decisions and how borrowers experience them; GAO's report highlights that improving early, structured coordination could reduce implementation friction and speed the transfer of policy into practice.
