As it downsizes, Education Department hasn’t implemented most of watchdog’s recommendations

A new report from the U.S. Government Accountability Office found that weaknesses in federal oversight has limited the Department of Education’s ability to ensure accountability across the nation’s higher education system, specifically with respect to student loans.$1.6 trillion outstanding in student loans
Staffing shortages coupled with federal programs getting more complex are some of the factors fueling the problems.
The recently-released report highlights mounting challenges as the outstanding federal student loan portfolio has expanded dramatically, currently exceeding $1.6 trillion. At the same time, the agency’s responsibilities have “grown substantially” in recent years, increasing pressure on its oversight capacity.
One of the most immediate concerns identified by auditors involves reduced monitoring of student loan servicers. According to the report, the Department of Education “stopped assessing student loan servicers on accuracy and call quality due to lack of staff capacity,” a move that has curtailed key performance reviews.
Examining broader accountability issues
Before those assessments were halted, the agency had only conducted them for two quarters, raising concerns about consistency and long-term accountability. The GAO noted that this gap comes at a time when federal student aid remains a major financial commitment. In fiscal year 2025 alone, about 10.5 million students received more than $131 billion in aid.
Beyond loan servicing, the report cited a decade of GAO work examining broader accountability issues in higher education, including oversight of colleges and the administration of federal aid programs. The agency concluded that existing safeguards are not keeping pace with the system’s size and complexity.
In total, GAO said it has issued 10 recommendations to improve accountability across these areas but the Department of Education has yet to fully implement most of them. Specifically, the report found that the agency has “not yet fully addressed seven of these recommendations,” leaving significant reforms incomplete.
The findings suggest that without additional staffing, improved monitoring tools, and stronger implementation of prior recommendations, risks to taxpayers and students would continue.
The watchdog said it will continue tracking the department’s progress in addressing the gaps it identified in the report.

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