Student-loan borrowers are entering uncharted territoryThe Education Department has never had to reenter 28 million people into payments at the same time.
Plus, federal servicers' technology may not be up to the task.
In contrast, federal student-loan servicing has been contracted out to five companies, and the government doesn't have the resources to fully keep tabs on the industry.
"So there really were deep-rooted structural problems in the loan programs on the policy design but also on the execution side," Kvaal said.
As the years went on, the GAO continued to identify flaws in student-loan programs that were hurting borrowers.
Persons:
Greg Ogden, Ogden, I've, servicer, he's, he'd, We're, Sen, Elizabeth Warren, James Kvaal, —, Kvaal, Barack Obama's, Obamacare, servicers, Scott Buchanan, servicers —, servicer MOHELA, MOHELA, Biden, Virginia Foxx, she's, Cardona, it's, Foxx, Carolyn Fast, Joe Biden's, Buchanan, Warren, Pamela Herd, Herd, Melissa Emrey, that's, Miguel Cardona, we're
Organizations:
Public, Education Department, Department, Student Loan, —, GOP, The Century Foundation, Federal Student Aid, Georgetown University, Medicare, Student Aid, Office, Biden, Social, Education, Consumer Financial, Emrey, Federal, Aid
Locations:
servicers, Arras