# Servicing activities

**Agency:** Education  
**Account:** Student Aid Administration (HEA I-D and IV-D, section 458)  
**Source document:** Student Aid Administration · p. 34  
**Vintage:** President's Budget PB2027  
**Canonical URL:** https://hitchintel.com/budget/education/servicing-activities  

> **Trust:** parsed from the agency Congressional Justification. Approximate, **not summable**, verify at the cited page.

## Funding ($M)

| Fiscal year | Basis | Amount |
| --- | --- | --- |
| FY2025 | enacted | 1,000.0 |
| FY2027 | request | 1,469.6 |

## Education discretionary budget authority (OMB PBDB — authoritative)

FY2027 $76.50B, FY2026 $79.00B. This is the agency total, not a sum of the parsed lines.


## 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.


**Where it sits:** Civilian / Non-Defense › Education › Student Aid Administration › Student Aid Administration (HEA I-D and IV-D, section 458) › Servicing activities


*HitchAI is an independent intelligence service, not affiliated with the U.S. government. Civilian line dollars are parsed from agency Congressional Justifications and are approximate.*