Back to the Real Salt Lake Newsfeed

Report finds problems with student loan servicing, oversight

New York • The nine companies and organizations tasked with servicing the accounts of the nation’s 30 million student loan borrowers repeatedly failed to do their jobs properly over a period of years and their regulator neglected to hold them responsible, a new report finds.

The report released Thursday by the Department of Education's independent inspector general's office shows some borrowers weren't getting the guidance and protection they needed as they sought the best plan for paying off their student loans. The nation's student loan debt now stands at $1.5 trillion.

The Inspector General's report focused on the operations of Federal Student Aid, a part of the Department of Education that oversees student loans, from January 2015 to September 2017.