A report by the U.S. Department of Education’s Office of Inspector General found that federal student-loan operations were heavily disrupted following DOGE-related cuts, leaving many Federal Student Aid suboffices without staff and contributing to borrower problems. The report cited a large share of personnel fired or leaving work and noted gaps in functions tied to lending institutions, default risk assessment, and borrower interfaces. The timing matters for borrowers because sweeping changes to federal student loan borrowing take effect July 1, including lifetime caps on previously unlimited loans and restrictions to repayment options. Earlier, reporters documented repayment access problems and incorrect payment bills. Taken together, the staffing breakdown described in the IG findings and the July operational changes create a higher-risk period for servicing accuracy, borrower guidance, and enrollment decision-making—particularly for graduate and professional students with high debt burdens. Higher education institutions, financial aid administrators, and compliance offices will likely need to intensify borrower communications, error-tracking, and escalation pathways during the transition.