Security clearance delays is keeping the federal agency from filling out the ranks of a division that handles defaulted federal student loans.
By Danielle Douglas-Gabriel Danielle Douglas-Gabriel Reporter covering the economics of education Email Bio Follow March 21 at 2:01 PM The first time Tiffany McDowell, 36, called the U.S. Education Department in February, she was quoted an estimated wait time of 50 minutes.
McDowell’s experience is not uncommon. Other student loan borrowers complain of being disconnected or holding for hours after calling the Education Department about money being withheld from their income tax refunds, known as a tax offset. Consumer lawyers acknowledge that it often takes a little longer to get through to the federal agency during tax season, but they say the current breakdown in communication is unprecedented.
Employees are being cleared, but not enough to resolve the call center disruptions. That means people who are severely behind on their student loan payments may find it harder to reclaim their refunds or stop the federal government from garnishing their wages or Social Security. What’s more, the disruptions could delay struggling borrowers from getting back on track through loan rehabilitation.
Still, the Education Department’s teams are the primary resource for people to dispute levies against their paychecks, Social Security or tax refunds. They also help some borrowers enroll in student loan rehabilitation, a federal program that erases a default from a person’s credit report after nine consecutive payments.
The watchdog found contractors who were working for the division before their background checks were completed, which led the agency to add more layers to its screening process. People familiar with the situation who are not authorized to speak publicly say the new system came into full effect at one of the busiest times of the year: tax offset season.
By the time McDowell reached someone at the Education Department, the mother of two was facing eviction. Months of unpaid maternity leave left her struggling to pay rent. Late fees piled up and eventually placed her in arrears. She desperately needed her refund.
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