Student Loans: New Loan Servicers May Complicate Payment Restart for Borrowers

"Many student loan borrowers may be surprised they have a different loan service provider when payment pause lifts this fall. That could complicate restarting their monthly payments," Yahoo Finance reports.

..."That means borrowers shouldn’t assume the provider they had before the pandemic is the same, and for those who had their accounts transferred to new loan servicers, they should anticipate some issues and possible mistakes as repayment starts.

'Communication leading up to the resumption of student loan repayments over the next several months will be key to ensuring borrowers are set up for success,' Justin Draeger, CEO and president of the National Association of Student Financial Aid Administrators, said in a press release. 'Transitioning millions of borrowers back into repayment cannot happen at the drop of the hat.'"

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.


Publication Date: 7/30/2023

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