The selection arrives since company overhauls the management of the $step 1.6 trillion student loan portfolio, a repayment and you may collection system that liberal lawmakers and you may advocates state try badly work on.
Nyc and Massachusetts prosecuted FedLoan getting mismanaging the loan forgiveness system and you will blamed the training Department getting lax supervision
Upkeep enterprises instance PHEAA, Navient and you may Nelnet was basically accused regarding delivering incorrect recommendations and you can flawed commission running and you will mishandling files. This new builders deny men and women charge and you can state upkeep troubles are rooted regarding the convoluted design of the commission program.
“Throughout the a dozen years due to the fact PHEAA approved the newest terms of the federal servicing contract, the federal financing software, once the addressed by the You.S. (more…)