Keeps Obama Plan to Streamline Loan System -

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Keeps Obama Plan to Streamline Loan System -

R
RisingWorld

0 Views • May 21, 2017

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Keeps Obama Plan to Streamline Loan System -
By STACY COWLEYMAY 19, 2017
The Education Department on Friday took up an Obama-era plan to streamline federal student loan
servicing by moving to a new, single platform for managing the loans of 43 million borrowers.
The department “will be overly reliant on a single student loan company,” Rohit Chopra, a senior fellow at the Consumer Federation of America, said, adding, “The changes may increase profits for the industry,
but may do little to tame the high levels of default in the program.”
The Education Department said it would be able to more effectively monitor a single servicer
The biggest change that Ms. DeVos’s department made on Friday was to eliminate a requirement
that the new system — to be devised by a single vendor — support back-end subcontractors.