The FY2027 President's Budget requests $1.47B for Servicing activities, within Education's Student Aid Administration (HEA I-D and IV-D, section 458) account. That is up 47% on the FY2025 figure of $1.00B, which is the enacted appropriation.
FY2025–FY2027
| Fiscal year | Basis | Amount |
|---|---|---|
| FY2025 | enacted | $1,000.0M |
| FY2027 | request | $1,469.6M |
Bases are separate columns and are never summed into one figure.
Education discretionary budget authority
From the OMB Public Budget Database — clean, summable, and the figure to cite for an agency total. It is the whole of Education's discretionary request, not a total of the parsed lines above, and this page never adds the two together.
What this funds
FSA's USDS contracts encompass a range of services, including platform management, contact center operations, and manual processing activities for loan servicing tasks. These performance- based contracts are focused on helping borrowers understand their options and repay their loans on-time by delivering positive customer experiences. FSA reduced the outstanding inventory of Income Driven Repayment plan applications by 73 percent, from 2.01 million to 556,000. The vendors are incentivized to help borrowers remain current on their loans through the new borrower allocations and the pricing structure for loan servicing. Each servicer's new borrower 1 Details may not add to the total due to rounding. 18 STUDENT AID ADMINISTRATION allocation is based upon that servicer's delinquency and default prevention performance in relation to the other servicers. Servicers are paid per borrower in their system. When a borrower defaults, they are transferred off of the servicer's system and onto the Debt Management and Collection System (DMCS), resulting in lost revenue for the servicer. Additionally, FSA has used an At-Risk Incentive Program to provide incentive payments to the loan servicers based on the number of identified at risk borrowers that are in current payment status at the end of the incentive period.
Extracted from Student Aid Administration, p. 34. Verbatim; nothing here is paraphrased.
Ask this budget line
Answers come from the figures on this page and nothing else. These dollars are parsed from Education's Congressional Justification and are approximate — confirm anything that matters against the cited page.
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