The Plan to Resume Federal Student-Loan Repayments in October Just Hit an Obstacle

"One of the handful of organizations that has a contract to service federal student loans announced today that it would not renew that agreement at the end of the year," The Chronicle of Higher Education reports. 

..."'No doubt critics will see Pheaa bowing out as a positive development,' Justin S. Draeger, president and chief executive of the National Association of Student Financial Aid Administrators, said in an email. 'But with one major servicer exiting, and still no comprehensive plan' from the Education Department 'on how they’ll be transitioning millions of borrowers into repayment, let alone a publicly available comprehensive strategy on loan servicing, the task before the Department grows more daunting every day.'"

...."Since 2014, the National Association of Student Financial Aid Administrators has produced several reports detailing the longstanding challenges of the program, many of them related to a lack of transparency and communication from Pheaa."

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Publication Date: 7/8/2021

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