The dominos are falling ladies and gentlemen. I wonder what will happen once all of these servicers exit the student loan/scheme game? What will big brother do?
ED/CFPB should pause and thoroughly review the multi hundred million dollar “Next Gen” student loan servicing contracts entered into by the previous ED administration in order to determine the level of FDLP servicing expertise and customer service record of each of the 5 contractors in order to avoid a continuation of these decades old abuses. A single servicing platform is a great idea as proposed in the Next Gen initiative. But, any contract entered into by the last administration impacting student loan borrowers should, at least, be suspect as far as customer service, communication, and protection of borrower rights and interests. Only one of the 5 new contractors has extensive FDLP servicing experience. And, one has no such experience. Doesn’t sound like an improvement.
Actually, based on the cost of these 5 year contracts and the incentive for contractors to generate a profit, ED should consider bringing federal student loan servicing and collections in house.
Yall - my loans are held by Navient. They have told me repeatedly over the last year that I don’t qualify for the loan pause during Covid and now I’m really unclear about what is going to happen to my loans. What are best practices for protecting myself and my fam?