DeVos Backs Away From Single Student Loan Servicer

"The Trump administration is signaling a possible shift in its plan to grant the more than $1 trillion federal student loan portfolio to a single loan servicer, according to a Department of Education announcement Tuesday," according to U.S. News & World Report.

"In May, Education Secretary Betsy DeVos said the department intended to move to a system in which one company, instead of a larger group of contractors, would oversee outstanding federal student loans.

But in outlining its plans for the new system this week, the department said it will create a single data-processing platform to house all student loan information – a project mirroring one set in motion by the Obama administration – and customer account servicing will be handled either by a single contract servicer or by multiple contract servicers.

... Going forward, the department plans to collect feedback from stakeholders – including members of the servicing industry, financial aid organizations like the National Association of Student Financial Aid Administrators, and borrowers – about what a new servicing system should look like.

In choosing who will provide loan-servicing, department officials plan to consider a variety of factors, including past performance and technical capabilities."

NASFAA's "Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 8/2/2017

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