NEWS: GAO Report Finds Trump’s Dismantling of the Education Department Leaves 43 Million Borrowers Without Support

NEWS: GAO Report Finds Trump's Dismantling of the Education Department Leaves 43 Million Borrowers Without Support

The Department of Education is refusing to hold student loan servicers accountable for providing borrowers with inaccurate information.

WASHINGTON - According to a new Government Accountability Office (GAO) report, the Trump administration's efforts to fire hundreds of workers at the Department of Education (ED) have undermined the accuracy of student loan borrower records and have failed to hold servicers accountable for providing high-quality customer service to America's 43 million student loan borrowers.

Commissioned by Ranking Member Robert C. "Bobby" Scott (D-VA-03), House Committee on Education and Workforce, and Ranking Member Bernie Sanders (I-VT), Senate Committee on Health, Education, Labor, and Pensions (HELP), and released today by the GAO, the report finds that President Trump's layoffs of nearly half the workers at the Federal Student Aid (FSA) office have effectively ended its oversight of student loan servicers. As a result, student loan servicers could be making egregious errors, such as sending Americans bills that do not match what they actually owe, placing borrowers in the wrong repayment plan, and not answering borrowers' phone calls.

"The Education Department (ED), in its oversight of the $1.6 billion student loan portfolio, is required by law to ensure that student loan servicers provide borrowers with accurate information about their loans. When they do not, borrowers can either overpay or be placed in the wrong student loan repayment program. ED's refusal to conduct oversight of student loan servicers is a dereliction of duty. Especially because, when ED conducted oversight under the Biden Administration, it issued penalties to servicers when it found four out of five failed to meet basic accuracy standards," said Ranking Member Scott. "Moreover, I am gravely concerned that ED incorrectly believes it can replace real oversight of servicers with untested automation or artificial intelligence. These findings should serve as a flashing red warning sign for Congress about what is to come as ED ramps up to implement the Republicans' overhaul of the student loan program in the 'Big Ugly Bill' and the havoc it will cause for borrowers. Lastly, if you are a borrower in need of assistance with your student loans, there is no one at ED to help you."

"Instead of providing relief to 43 million Americans who are drowning in student debt, the Trump Administration has made it harder for them to understand how much they owe and how long it will take to pay back by illegally firing nearly half the staff at the Federal Student Aid Office," said Senator Sanders. "That is unacceptable. But sadly, it is not surprising. Last year, the Trump administration made the largest cut to higher education in American history to help pay for a $1 trillion tax break to the top 1 percent. Now, President Trump is driving up the cost of a college education and student loan costs for tens of millions of Americans struggling with student debt when they can least afford it. That has got to change."

The GAO report documents how Trump's ED has turned its back on America's student loan borrowers and left them on their own:

1. In its first month, the Trump administration laid off nearly half of the workers at FSA, the agency responsible for managing the student financial assistance programs.
2. According to agency officials, these layoffs effectively ended their ability to hold student loan servicers accountable for the accuracy of their student loan records and for providing customer service to borrowers.
3. When the ED conducted oversight under the Biden administration, it found four out of five student loan servicers failed to meet basic accuracy standards.
4. While previous administrations penalized servicers for hundreds of thousands of dollars when they failed to meet basic quality standards, the Trump administration is not working to ensure servicers send accurate bills or respond to borrowers' calls.
5. Despite assurances in September 2025 that ED would implement some oversight, ED still has not put in place basic oversight, as of December, and has refused to accept GAO's straightforward recommendation to protect student loan borrowers.

To read the full report, click here.

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