Federal student aid operations are in the middle of a destabilizing transition after Washington gutted Federal Student Aid’s (FSA) student-loan office management, and a new Inspector General report is detailing the staffing fallout. The Office of Inspector General found that 40% of staff managing the $1.7 trillion federal student-loan portfolio were fired or left in the wake of DOGE-related cuts, leaving critical systems and oversight functions understaffed. The report also says nearly a quarter of FSA’s suboffices (out of 136) had no remaining employees, including units supporting lending institutions, default-rate tracking, and school-related median earnings monitoring. Borrowers have reported payment-calculation and account-access problems, including incorrect low monthly bill amounts and issues accessing repayment options. With major rule changes scheduled for July 1—lifetime caps and restrictions on repayment—higher education leaders are watching how FSA’s reduced capacity may affect compliance timelines, borrower communications, and institutional reporting, particularly for schools relying on predictable loan administration.