Watchdog Says Some Federal Oversight for Student Borrowers Has Stopped

In Brief

The U.S. Government Accountability Office reports a halt in some Education Department oversight for student borrowers.

Key Facts

• Some federal oversight protecting student loan borrowers has stopped, according to the U.S. Government Accountability Office.
• Without this oversight, borrowers could be placed in the wrong loan repayment status or billed incorrect amounts.
• The Education Department's oversight is intended to prevent errors affecting student borrowers.

What Happened

The U.S. Government Accountability Office stated that some Education Department oversight designed to protect student loan borrowers has stopped.

Why It Matters

Oversight helps ensure borrowers are correctly billed and placed in the right repayment status. Its absence may lead to errors affecting repayment and billing. Based on a single source report

What's Next

It is unclear whether or when oversight will be restored. Further updates from the Education Department or related agencies may follow.