(InvestigateTV) — At the U.S. Department of Education, the Federal Student Aid Ombudsman’s Office helps borrowers resolve loan disputes and errors.
Rachel Gittleman was part of the team tasked with helping those borrowers.
“The people that came to us, they were struggling because their loans were appearing incorrectly on their credit reports,” Gittleman said. “And that was affecting their ability to get a car loan, or a mortgage. Or get a new apartment or get a new job. It was borrowers who had already reached the end of their rope.”
Earlier this year, her position was cut as part of a department-wide reduction in force. In a press release, Education Secretary Linda McMahon said the move was about improving efficiency and accountability, and making sure resources go to students, parents, and teachers.
“I was riffed. Which means part of a reduction of force,” Gittleman shared.
In August, Gittleman received an email confirming her termination. She said she leaves behind hundreds of unresolved cases and thousands more cases remain pending across her office.
“When I left, I had 300 open complaints in my name. And I, our office as a whole, had 16,000 pending complaints,” she shared. “The sadness is for those people that it was my job to help.”
Gittleman’s concerns come as student loan collections resume nationwide.
The federal government has begun reinstating enforcement for borrowers in default, including wage garnishments.
“The borrowers themselves are also not ready for this monumental shift! And-the economy is not ready for this shift,” Gittleman said.
According to the Federal Reserve Bank of New York, student loan balances grew by $16 billion in the first quarter of…
Mike Pierce, executive director with Protect Borrowers, said borrowers have long struggled to get help with basic issues like billing errors or disputes, and that may only get worse as support systems shrink.
“We do hear from borrowers every day that are waiting on hold to talk to somebody at a student loan company, sometimes for hours,” Pierce said. “And this chaos, this confusion. The fact that it’s so hard to get somebody on the phone, it just adds to that sense of anxiety as things start to go wrong.”
He said state resources may offer an alternative if federal support is delayed or overwhelmed.
“Many states have officials that are responsible for helping you out, even if the federal government isn’t there to help you,” Pierce explained. “They’re called state student loan ombudsman or state and student loan borrower advocates, and you can learn more about who those state advocates are and where to get help from your state government.”
We reached out to the U.S. Department of Education and asked for an on-camera interview with Secretary Linda McMahon. We did not receive any response to our emails.
As for Gittleman, she’s fighting to get her job back, with hopes of returning to the work she says still matters.
“I really believed strongly in the work that we all did. I believe strongly in the oath of the office that we took,” she said. “And I was prepared to continue on that journey! Despite administration changes. That is the idea behind the civil service is that, you’re there to weather the storms.”