Student-loan borrowers are facing payment errors and customer service delays. A new federal report offers a solution.
A new GAO report highlights significant coordination failures between the Department of Education and student-loan servicers, leading to billing errors and customer service delays. The report recommends better communication protocols, though the Department of Education has expressed disagreement with the findings.
Why it matters
Administrative inefficiencies in the student loan system directly impact millions of borrowers' financial stability and access to accurate information.
Student-loan servicers said they would benefit from better coordination with the Department of Education. Al Drago/Getty Images A new GAO report said that student-loan servicers struggle to implement changes from the Education Department. The coordination challenges could lead to delays in communicating payment information to borrowers. The Education Department disagreed with the GAO's recommendation to establish communication criteria. Your student-loan servicer wants more help carrying out the sweeping changes from the Department of Education. The Government Accountability Office released a report on Thursday that delved into the coordination between four federal student-loan servicers and the Education Department. It found that the servicers — Nelnet, Aidvantage, MOHELA, and EdFinancial — reported challenges implementing program changes from the department, citing a "lack of clear up-front instruction" that has sometimes led to "extensive back-and-forth," the report said.
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