As major federal student loan borrowing changes take effect next month, reporting highlights that Federal Student Aid (FSA)—the agency that manages the $1.7 trillion federal student-loan portfolio—was “gutted” by DOGE budget cuts in early 2025. Borrowers have reported repayment and plan-access problems since the disruptions. An Education Department Office of Inspector General report cited in the coverage says 40% of staff managing the loan portfolio were fired or left for other reasons. The report also says nearly a quarter of FSA’s 136 suboffices had no remaining employees, including suboffices tied to school-facing lending and risk assessment. The operational strain comes as the July 1 timeline approaches, including lifetime caps on previously unlimited loans and limits on repayment options, raising the stakes for system reliability during peak borrower changeover periods. For colleges and university financial aid offices, the near-term impact is twofold: helping students navigate new eligibility and repayment structures, while also troubleshooting service disruptions that can stall billing, plan enrollment, and dispute processes.