The U.S. Department of Education has adopted a new set of policies to improve student-loan servicing, the department said in a news release on Wednesday.
In a memo, the department said it would work with the Treasury and the Consumer Financial Protection Bureau to improve student-loan servicing systems to protect borrowers and help them avoid defaulting on loans. The memo highlighted five specific changes.
Among the most notable, the department will create economic incentives to better serve borrowers and make sure they can pay their loans, while avoiding fixed-fee structures. The department also wants to encourage transparency and make more information available on when borrowers ask for help and for appeals.
Read more at The Chronicle of Higher Education: http://chronicle.com/blogs/ticker/education-dept-plans-to-improve-customer-service-for-student-loan-borrowers/112968