FY23I22DC0067020724v100SECURED.pdf Our objective was to review the U.S. Department of Education’s (Department) decision - making process for terminating its private collection agency (PCA) contracts. The decision to terminate the PCA contracts is part of an ongoing, multiyear Departmental strategy to overhaul student loan servicing and default collections. In mid-2018, FSA made the decision for Business Process Operations (BPO) vendors to handle future default collections due to potential efficiencies and costs savings and the belief that doing so would improve customer service and the customer experience. As of September 2022, defaulted accounts are with FSA’s Default Resolution Group, which is handling any defaulted customer inquiries, and FSA intends for the BPO vendors to begin handling default collections in June 2023.
Date Issued: Monday, November 14, 2022 Agency Reviewed / Investigated: Submitting OIG-Specific Report Number: Component, if applicable: Federal Student Aid Agency-Wide Type of Report: Inspection / Evaluation Questioned Costs: Funds for Better Use: Number of Recommendations: Report updated under NDAA 5274: View Document:| Attachment | Size |
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| FY23I22DC0067020724v100SECURED.pdf | 1.39 MB |
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The United States Department of Education (Department) Office of Inspector General conducts independent and objective audits, investigations, and other activities to promote the efficiency, effectiveness, and integrity of the Department's programs and operations. We deliver valuable products to encourage fiscal integrity and continuing improvement in program delivery and effectiveness, while also maximizing our efforts to prevent and detect fraud, waste, and abuse.
