Spending Bill Gives Flexibility to Borrowers Seeking Loan Consolidation
"Language in the omnibus spending bill Congress agreed to over the weekend directs the Department of Education to allow student loan borrowers to select any servicer when consolidating their federal student loans," Inside Higher Ed reports
"It's a change that was long sought by state-based and not-for-profit servicers. Previously, borrowers were required to move their loans to one of several large servicers after consolidating. ...
Justin Draeger, the president and CEO of the National Association of Student Financial Aid Administrators, said the group has recommended for server-specific branding to be removed from communication with borrowers to create a seamless experience of paying back student loans.
'But, as long as we're going to have some competition with loan consolidation, I don't see why any specific qualified federal loan servicer should be excluded from competing,' he said."
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Publication Date: 5/3/2017