Federal Reports

The U.S. Postal Service has an opportunity to generate additional revenue by offering micro-warehousing and other logistics support services. Its extensive processing, retail, and transportation network – combined with its significant shipping capabilities – could likely meet customers’ demands for one-stop micro-warehousing and logistics solutions to support e-commerce. Foreign suppliers selling goods in the U.S. via e-commerce could be particularly well served by the Postal Service’s entry into this market.

In response to Congressional requests and media reports about whether the terms and conditions of the debit cards that servicers use to deliver Title IV credit balances to students were in the best interest of students, we conducted a review that determined that FSA should take action to better ensure that student interests are served. Among our findings, we noted that (1) Schools that outsourced credit balance delivery gave servicers significant control over the Title IV funds delivery process and relied on them to comply with Title IV regulations but did not routinely monitor servicers’ Title IV compliance or their handling of student complaints; (2) Schools had financial incentives in their contracts with servicers that created the potential for conflicts of interest that could influence school officials’ decisions and actions at the expense of student interests; and (3) Schools provided, or servicers collected, student information that was not needed to deliver credit balances.