The U.S. Department of Education today announced further action—in coordination with the U.S. Department of the Treasury and the Consumer Financial Protection Bureau (CFPB)—to better support the more than 40 million Americans with federal student loans. The actions build on the work of a September 2015 Joint Statement of Principles on Student Loan Servicing calling for consistency in student loan servicing practices.
Today's announcement includes a new initiative to modernize the way student loans appear on borrowers' credit reports and a set ofloan servicing objectives that will inform the Department's goal to build a new state-of-the-art loan servicing system to further improve student loan servicing practices, promote borrowers' successful loan repayment, and reduce borrower defaults. Additionally, the Department is debuting the studentloans.gov/repay landing page, to better inform student loan borrowers about repayment options best-suited for their unique circumstances.
"The Obama Administration continues to look for ways to make college more affordable and accessible for all families. A college degree is one of the best investments a student can make in his or her future, and it remains the clearest path to the middle class," said U.S. Secretary of Education John B. King Jr. "We want student borrowers to know that they have the support they need to manage their debt and navigate the options available to them to pay back their loans."
Read the U.S. Department of Education Press Release: http://www.ed.gov/news/press-releases/departments-education-and-treasury-and-consumer-financial-protection-bureau-announce-new-joint-efforts-protect-and-support-student-loan-borrowers