Due to a staff shortage at the U.S. Department of Education’s Ombudsman Office, which investigates complaints related to student loans, nearly 27,000 cases have accumulated. According to information obtained by NBC News, the Department disclosed this situation in a letter sent to Senator Elizabeth Warren on July 21.
“Tehsil365”, citing NBC News, reports that the office receives hundreds of complaints every week concerning loan payments, financial aid fraud, and other issues. In May, just over 1,100 complaints were resolved, indicating a growing backlog. In a letter addressed to Education Secretary Linda McMahon, Senator Warren demanded an explanation of how the Department is fulfilling its core functions amid mass staff layoffs and requested a response by August 20.
The Trump administration plans to close the Department and has laid off more than 1,400 employees for this purpose. The number of staff in the Ombudsman Office has dropped from 63 to 25 over the course of the year. Complaints increased from 16,000 in March to 27,000 by the end of June.
Experts say this situation has led to delays in addressing borrowers’ payment issues, overpayments, and errors in loan calculations. Moreover, the reduced workforce limits the Department’s ability to identify systemic problems.
The Department states that the changes aim to streamline processes more efficiently and in compliance with the law. However, Warren emphasized that the leadership’s plans to accelerate loan applications remain “very vague.”