Report finds problems with student loan servicing oversight

NEW YORK — A new government report has found that student loan servicers repeatedly failed to do their jobs properly over a period of years and their regulator neglected to hold them responsible.The report released Thursday by the Education Department’s independent inspector general’s office shows some borrowers weren’t getting the guidance and protection they needed as they sought the best plan for paying off student debt.Nine companies and organizations are tasked with handing the accounts of the nation’s 30 million student loan borrowers.The report found Federal Student Aid was not holding servicers accountable. It says that six out of 10 times the regulator did a formal observation a problem was uncovered. Some servicers had the same issue repeatedly.FSA often let the servicer off with a slap on the wrist.The Associated Press