Press Releases

Education and Workforce Committee Chairman Tim Walberg (R-MI) and Health, Education, Labor, and Pensions Chairman Bill Cassidy, M.D. (R-LA) issued the following statements after the Government Accountability Office (GAO) released a report today exposing how the Biden-Harris Department of Education (ED) left student loan servicers in the dark about program changes:

“The Biden-Harris administration prioritized unlawful student loan bailouts over the basic responsibility of administering the federal student loan program. By diverting critical staff and resources, Biden-Harris threw borrowers and servicers into total chaos. Students and taxpayers deserve a system that is transparent, accountable, and functions—not one plagued by mismanagement and confusion. We applaud the Trump administration’s efforts to restore coordination with servicers and restore accountability to the federal student loan program,” said Chairman Walberg.

“Instead of fulfilling their duties as Congress intended, the Biden-Harris administration dramatically increased the scope of its student loan program and misled borrowers into thinking their debt would be cancelled,” said Dr. Cassidy. “Thanks to the Working Families Tax Cuts, Republicans are helping students get out of the cycle of debt Democrats put them in. We must continue to work with the Trump administration to strengthen accountability to our loan program so students have the best chance to succeed.” 

BACKGROUND: In response to a request from then-Chairwoman Foxx and then-Ranking Member Cassidy, GAO today released its report detailing how the Biden-Harris ED left loan servicers in chaos. In one example, a change request resulted in six rounds of questions and answers with servicers over a two-month period before servicers were given clarification. The report also notes that under the Trump administration, communication has improved. ED now proactively solicits servicer input on draft requirements related to new student loan repayment plans.
 
ED holds over $1.6 trillion in outstanding federal student loans, which are administered through contracts with private loan servicers. Effective coordination between the Department and its servicers is essential to ensure borrowers receive accurate information and uninterrupted service.