The lack of clear, timely guidance can lead to rounds of questions between servicers and U.S. Department of Education (ED) officials as they work to implement changes, GAO found, delaying implementation and, in turn, relief or clarity for borrowers.
The report, "Federal Student Loans: Education Could Better Coordinate with Servicers When Making Program Changes," found the Department of Education has not consistently coordinated with loan servicers early in the process of implementing program changes. Instead, early coordination has largely depended on individual staff decisions rather than a formal agencywide process.
ED officials told the GAO they recognize the value of bringing servicers into the process before or shortly after a change is announced. In June 2025, ED officials described early coordination as uncommon, but according to their self-reporting, it had improved six months later. However, the department still does not have formal criteria for determining when servicers should be involved early, investigators found.
The report's authors recommended that ED develop and implement formal criteria for determining when early coordination with servicers is warranted.
The recommendation comes as federal student loan programs continue to undergo significant changes, making clear guidance particularly important for the companies responsible for translating those changes into action for borrowers.
For campus financial aid offices, the implications extend beyond the relationship between ED and its loan servicers. When servicers do not have clear guidance on a program change, financial aid officers may have less information to share with students who are trying to understand their options, complete required steps, or resolve problems with their accounts before the deadline. That can make an already complicated financial aid process more difficult for institutions to navigate with students — particularly when guidance is changing or questions remain unresolved.
