As part of a continued effort to implement a new vision for student loan servicing that ensures the more than 40 million Americans with student loan debt get high-quality customer service and fair treatment as they repay their loans, the U.S. Department of Education today outlined a series of enhanced protections and customer service standards that will guide the future of federal student loan servicing practices. The policies were outlined in a memorandum from U.S. Under Secretary of Education Ted Mitchell to Federal Student Aid (FSA), which will implement the policy directives to strengthen student loan servicing during the ongoing procurement process. These policies were developed in consultation with the U.S. Department of the Treasury (Treasury) and the Consumer Financial Protection Bureau (CFPB).
“Today’s policy directive is a big win for tens of millions of borrowers,” said U.S. Secretary of Education John B. King Jr. “It will help ensure that student loan borrowers get the service they deserve.” While the majority of federal student loan borrowers continue to successfully repay their student loans, there are still too many borrowers who are struggling, or who may be at risk of defaulting on their loans. Since taking office, President Obama and his Administration have worked hard to keep college affordable and help student loan borrowers manage their debt. In March 2015, as part of that effort, the President unveiled a Student Aid Bill of Rightsdirecting federal agencies to work together on a series of actions to help borrowers manage their student debt.