Betsy DeVos hits hard reset on student loan servicing contracts

May 22, 2017
  • Industry News

The Education Department said Friday that it will select one company to collect student debt payments on its behalf, rather than the nine contractors that currently handle the federal government’s $1.2 trillion portfolio of education loans.

The decision, which would take effect once the existing contracts expire in 2019, reverses years of policy implemented by the Obama administration and would revive a servicing model that had an equal number of benefits and problems.

Read more at The Washington Post: https://www.washingtonpost.com/news/grade-point/wp/2017/05/19/betsy-devos-hits-hard-reset-on-student-loan-servicing-contracts/