Republican education leaders in the House and Senate asked the Government Accountability Office (GAO) to provide information about the U.S. Department of Education's administration of the Direct Loan Program among concerns about loan rehabilitation and debt collection practices.
The day after a Bloomberg report about some students being harassed during the debt collection process, the lawmakers sent a letter to GAO Comptroller General Gene Dodaro asking GAO to answer five questions about the department's rehabilitation and loan collection processes. The lawmakers are also asking borrowers to submit any issues they've experienced while repaying their Direct Loans.
"As part of our oversight responsibilities, it is important for us to understand challenges with the Direct Loan program," the letter states. "Bureaucratic problems within the department that are creating additional issues for borrowers could have serious implications not only for the Direct Loan program, but also for the financial stability of all student loan borrowers."
The letter is signed by House Education and the Workforce Chairman John Kline (R-MN), Subcommittee on Higher Education and Workforce Training Chairwoman Virginia Foxx (R-NC), Rep. Judy Biggert (R-IL), Senate Health, Education, Labor, and Pensions (HELP) Committee Ranking Member Michael Enzi (R-WY), Sen. Lamar Alexander (R-TN), and Sen. Tom Coburn (R-OK)
Publication Date: 3/28/2012