The Education Department failed to hold Xerox Education Solutions, a company it had contracted to track and service student loans, accountable for fixing persistent problems in its student-debt-management system, the agency’s inspector general said in an audit report released on Thursday.
According to the report, the department failed to ensure that Xerox met milestones for fixing the system and routinely offered extensions when the company missed its deadlines. At the same time, the agency did not “independently verify” that fixes had been made, the report said.
Thursday’s report is the latest in a string of audits and investigations criticizing the Education Department’s oversight of the companies that service and collect on federal student loans.
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