The reduction in crippling staff at the U.S. Department of Education and the Consumer Financial Protection Agency (CFPB) has made student loan borrowers increasingly vulnerable as they navigate complex repayment options. Forgiveness Program.
With federal oversight waning, student loan borrowers must play a more active role in managing their debt.
Staff cuts, policy change disrupts borrower services
Several federal agencies have been broken by staff cuts implemented by the Department of Government Efficiency (DOGE). This makes it difficult for student loan borrowers to process and process applications in a timely manner. It also reduces surveillance of federal loan servicers.
US Department of Education
The number of staff at the U.S. Department of Education fell 47% from 4,133 to 2,183 as of mid-March 2025. Layoff In addition to 1,378 people, 572 employees who accepted the separation package led to a total cut of 1,950.
This includes 326 layoffs at the Federal Student Aid Agency (FSA), nearly a quarter of its 1,371 employees. The FSA implements a student loan program in addition to free applications for Federal Student Aid (FAFSA) and other federal student aid programs. FSA Ombudsman helped resolve borrowers’ complaints and disputes, including federal student aid, losing eight of their 21 staff, a 38% drop.
According to FSA 2024 Annual Reportthe U.S. Department of Education received 289,523 complaints in 2024. This is more than twice the 122,632 complaints received in 2023. But now, FSA Feedback Form He was buried in the page footer and renamed “Send Feedback.”
CFPB
The CFPB announced plans to fire 1,483 employees, cutting the workforce by 88% from 1,690 to 207. Decided in late April The federal court of appeals temporarily blocked the mass shooting.
CFPB plays a key role in the investigation Reporting illegal and abusive practices A federal loan servicer will require the servicer to make changes and pay compensation.
According to 2024 CFPB Annual ReportCFPB received 13,524 complaints regarding federal student loans through the CFPB complaint form between 2023 and 24. Private student loans 1,354 on debt collection (646 on federal student loans, 708 on private student loans).
Any complaints received on the CFPB complaint form will be automatically routed to the lender or loan servicer for resolution, and not all lead to independent investigations by the CFPB.
However, in April, it was published by CFPB. Playback notes It said the bureau would take away student loans. The memo also states that the department “respects the scope of regulations of other federal agencies” and “minimises duplication enforcement.” So, as long as the CFPB is still dealing with borrower complaints, it will focus on private student loans and leave monitoring Federal Student Loans to the US Department of Education or successors.
CFPB Ombudsman’s message to federal student loan borrowers: “You are legally entitled” “Request”
Julia Bernard, the CFPB fired student loan ombudsman, tells borrowers not to give up asking for help from federal agencies. “They are legally entitled to a level of service they don’t get and should demand that.”
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Small and Medium Enterprise Management
Small and Medium Enterprise Management (SBA) announcement Around the same time President Trump announced that federal student loan executives would be moving to the SBA, 43% cut staff. This movement has not yet happened as it will require legislative actions.
The US Department of Education faces processing delays
On May 15, 2025, the US Department of Education reported that as of April 30, 2025, there were 1,985,726 pending applications from borrowers seeking an income-driven repayment plan. Throughout April, ED handled only 79,349 applications, or about 4%.
There was also a backlog of the PSLF buyback application, with only 1,472 (3%) processing during April.
The backlog will soon grow. If interest savings are over, 8 million borrowers will need to switch repayment plans.
Call pickups at the Federal Student Aid Information Center (FSAIC) call centres fell to less than a minute, but call volumes surged after the US Department of Education announced the reopening of mandatory collections. Borrowers will need to continue calling the 1-800-4-FED-AID (1-800-433-3243) number, but try calling first in the morning or using the chat feature.
How borrowers defend themselves
In this challenging environment, it is important for borrowers to take proactive steps to protect their rights and defend themselves.
Use a self-service tool
Borrowers can access the dashboard at dustentaid.gov to find out Who are their loan servicers? Check your loan balance, interest rate, etc. Knowing a loan servicer will allow you to contact us directly about specific inquiries. You can also access student loan information from the Loan Servicer website.
Borrowers must maintain records for all loans, including each.
- Types of loans
- Loan Servicer
- Payment amount
- Monthly payment amount
- interest rate
- Remaining debt
They can obtain this information from dustentaid.gov and their loan servicer website. You must also keep a record of the dates of all communications with the servicer (including email and phone logs with names and dates).
Borrowers should also maintain a spreadsheet that tracks the full payment history, including the date each payment was made, the amount of payment, and the employer Postponement and patience. Tracking your payment history will provide you with important documents in case of inconsistencies. This is the process of your application for loan waiver, which may occur during a loan servicer change.
If the borrower is pursuing Forgiveness of public service loans (PSLF), they need to submit PSLF Help Tool Every year, and whenever they change employers.
Non-governmental sources of support
Borrowers should visit the loan servicer’s website or call the loan servicer to help you get information about the loan or deal with any issues.
Most lenders and loan servicers have ombudsmen who try to address borrower complaints and concerns in a fair and fair way. For any outstanding issues, please contact the loan servicer ombudsman.
Borrowers can also seek assistance from the university’s Financial Aid Bureau. The university’s Financial Aid Bureau helps borrowers understand student loan terms and repayment options.
Complaints may be filed on Better Business Bureau (BBB). Private lenders often try to resolve complaints that appear on the BBB website.
Execution
Enforcement of the lending regulations will be moved to the state. The state has jurisdiction over borrowings by state residents and borrowers who have gone to state universities.
Previous examples of state enforcement efforts include settlements on illegal incentives by education lenders. Loan management game Enforcement of document fraud.
Borrowers can get help by calling the Consumer Protection Agency State Attorney General’s Office.
Conclusion
In this new era of reduced support, informed persistent borrowers are their own best supporters. Track records, follow up regularly, and don’t hesitate to escalate the issue to state agencies and advocacy groups when necessary.
