Final yr, the Division of Schooling awarded new pupil mortgage servicing contracts to 5 corporations: CRI, EdFinancial Providers, Maximus Schooling, LLC, MOHELA, and Nelnet. The aim of the adjustments is to enhance pupil mortgage servicing, present higher customer support to debtors, and maintain servicers extra accountable for his or her errors. The adjustments will go dwell this spring. NCLC launched a report at present analyzing the adjustments and the potential influence on pupil mortgage debtors’ rights and experiences.
Whereas among the adjustments will likely be simple to implement, there are a selection of adjustments which can be murkier and extra complicated. NCLC will likely be monitoring how the Division implements and oversees these adjustments.
The brand new contracts embrace adjustments that NCLC has been advocating for to enhance how loans are serviced, similar to:
new requirements to guage servicers primarily based on the standard of service they supply to debtors;
new compensation and monetary incentives for servicers primarily based on how efficient they’re at serving to debtors keep away from delinquency and default;
adjustments to how particular forms of loans are serviced, similar to debtors searching for PSLF and Whole & Everlasting Incapacity discharges; and
making a single entry level by way of studentaid.gov the place debtors can handle their loans.
These adjustments will hopefully end in massive enhancements for debtors, however there will likely be challenges within the course of. When you’ve got issues together with your mortgage servicer, share your story with NCLC to assist make the coed mortgage system work.
