Pursuit's Take
The purpose of this OIG memorandum is to inform DOE of the concern that Federal Student Aid (FSA) paid estimated commissions and bonuses to Private Collection Agencies (PCAs).
As a result, FSA paid an estimated $448 million in commissions, without reviewing supporting documentation, and paid an estimated $8.3 million in bonuses based on a revised methodology. FSA’s revised methods for paying commissions and bonuses may have resulted in overpayments or underpayments to the PCAs.