Having read the Musk biography, there are a lot of his disciples that understand the Musk "algorithm" and way he goes about leaning out an organization. I can see teams of people led by some of his trusted leaders going into an agency, looking at processes, job responsibilities, automation opportunities, redundancies, etc., and identifying the waste. You would hope there are a group of people in those agencies that have been frustrated with the inefficiencies and would be on board and support the change and be a part of it.There are currently about 3 million federal employees if Elon and Vivek cut 5-10 % will services be noticeably impacted ? With their ability to automate services I doubt it.
Well, many student loan services have been outsourced for a while already.https://en.wikipedia.org/wiki/United_States_Department_of_Education
Just taking the Department of Education alone - $238 billion budget and 4, 400 employees - mostly student loan management (which has been a disaster with defaults and forgiveness). This can be outsourced and can't be run any worse.
But why duplicate?Well, many student loan services have been outsourced for a while already.
I can tell you, after personally dealing with years of incompetence from both FedLoan Servicing and MOHELA, that it hasn't necessarily made anything better or more efficient.